S&P: Brand Development Inc. Downgraded To 'D' On Missing Scheduled Interest And Principle Payments
April 28, 2009 "Standard & Poor's"
MOSCOW (Standard & Poor's) April 28, 2009--Standard & Poor's Ratings Services said today that it had lowered its long-term corporate credit rating on Russian fresh produce distributor Brand Development Inc. (Sunway) to 'D' from 'CCC+'. At the same time, the Russia national scale rating was lowered to 'D' from 'ruBB'.
"After the information appeared in an article published by Kommersant newspaper on April 24, 2009, Sunway's management confirmed to us that it had missed scheduled payments of interest and principal on its bank loans and that Sunway was unlikely to make timely and full payments on its remaining debt, including $27 million still outstanding after a put option on its total $50 million credit linked notes issue maturing in May 2009," said Standard & Poor's credit analyst Anton Geyze.
Sunway's management also confirmed that it had filed for liquidation of its two key operating subsidiaries, Sunway-group and Rusagro.
According to Sunway's latest audited financials for the year ended June 30, 2008, its reported debt totaled $262 million.
Company — Sunway Group
Full nameSunway Group
IndustryTrade and retail