SINGAPORE (June 9, 2011)—Credit-rating agency Standard & Poor's has issued a warning on GiTi Tire over lack of restructuring of a $200 million bond due to mature in January 2012.
As a result, S&P placed GiTi's B long-term corporate credit rating and cnBB- Greater China scale rating on China-based tire manufacturer GITI Tire Pte. Ltd. on CreditWatch with negative implications
At the same time, S&P placed CCC+ issue rating on GITI's $200 million 12.25-percent senior secured notes on CreditWatch with negative implications, and lowered its Greater China scale issue rating to cnCCC+, from cnB, before placing it on CreditWatch with negative implications.
“We have placed the ratings on CreditWatch because of the uncertainty on the notes refinancing but we understand that the company is currently trying to arrange refinancing,” an S&P analyst said.