KUALA LUMPUR (June 3): Fitch Ratings has downgraded Serba Dinamik Holdings Bhd s Long-Term Issuer Default Rating to B- from BB- , following questions raised over the quality of its earnings by its auditor. The rating agency has also downgraded Serba Dinamik s senior unsecured sukuk due 2022 and 2025 to B- from BB- , with a Recovery Rating of RR4 .
The ratings have been placed on Rating Watch Negative (RWN), Fitch said in a statement. The downgrade reflects the pressure on Serba Dinamik s liquidity and the elevated refinancing risk from its short-term debt maturities in 2021 and its US$222 million sukuk due May 2022, Fitch said.
“We believe the company s access to debt funding has been compromised after its auditor, KPMG, requested an independent review when a 2020 statutory audit raised multiple questions over the company s operations. The RWN takes into account the plans for the independent review and the uncertainty over the completion of the review, and the limited
KEY RATING DRIVERS
IDR AND VIABILITY RATING
The Long and Short-Term IDRs of GTB Ghana are driven by its standalone creditworthiness, as expressed by its Viability Rating (VR) of ‘b’. The ratings consider the concentration of its operations in the challenging Ghanaian operating environment, its small market shares, high credit concentrations and ambitious growth strategy. These considerations are balanced against the bank’s healthy asset quality and strong profitability, capitalisation and liquidity coverage.
GTB Ghana has small market shares of assets and customer deposits (both 3% at end-2020) but its franchise benefits from being a subsidiary of Guaranty Trust Bank PLC (GTB PLC), Nigeria’s fifth-largest banking group. Market shares are expected to increase moderately over the next three years as GTB Ghana grows faster than the sector average with the objective of becoming a systemically important bank. However, this target is challenging due to the bank’s current marke
Fitch affirms Bulgaria s Fibank at B , outlook negative Author: First Investment Bank Licence: All Rights Reserved
SOFIA (Bulgaria), May 26 (SeeNews) - Fitch Ratings said that it has affirmed the Long Term Issuer Default Rating (IDR) of Bulgaria s First Investment Bank (Fibank) [BUL:FIB] at B with a negative outlook, and the bank s Viability Rating (VR) at b .
Fibank s ratings reflect its substantial asset quality pressures and high capital encumbrance, which weigh on its ratings despite the solid medium term recovery prospects for the Bulgarian economy, Fitch Ratings said in a statement on Tuesday.
The ratings agency also said in its statement:
Fitch Affirms KCS at ‘BBB’
Fitch Affirms KCS at ‘BBB’ Written by William C. Vantuono, Editor-in-Chief
Fitch Ratings has affirmed Kansas City Southern’s Long-Term Issuer Default Rating (IDR) and senior unsecured rating at ‘BBB.’ In addition, Fitch has affirmed KCS’s Short-Term IDR and senior unsecured rating at ‘F2.’ Fitch’s Rating Outlook is ‘Stable.’
Fitch said its affirmations “follows KCS’s announcement that it will be acquired by Canadian National (CN) in a transaction valued at $33.7 billion. The announcement comes after KCS had previously agreed to be acquired by Canadian Pacific (CP) for $28.9 billion. The valuation for the transaction is high at more than 20x KCS’s projected 2020 EBITDA. The transaction must be approved by the Surface Transportation Board (STB) and Mexican regulatory bodies before closing. The companies expect the transaction to close in mid-2022. Fitch does not publicly