SINGAPORE (Yosefardi) – Fitch Ratings has downgraded PT Bakrie Telecom’s (BTEL) Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to ‘C’ from ‘CC’.
Also, the agency has downgraded the May 2015 USD380m bond fully guaranteed by BTEL to ‘C’ from ‘CC’. The Recovery Rating of the bond is ‘RR4’.
The ratings were downgraded after BTEL did not pay a USD21.8m coupon on its USD380m senior unsecured bond that was due on 7 November 2013.
Under the terms of the notes, the company has a grace period of 30 days to pay the coupon before an event of default is triggered.