Brickwork downgrades Coffee Day affiliate's bonds from "BBB-" to 'D'

Brickwork Ratings has downgraded debentures of Tanglin Developments (TDL), a unit of Coffee Day Enterprises, to “D (CE)” from “BBB-” for defaulting on coupon payment due to its significantly deteriorated liquidity. Earlier, the rating agency had placed instrument on credit watch with negative implications.

The rating for non-convertible debentures (NCDs) is based on credit enhancement by way of pledge of shares of Coffee Day Enterprises (holding company of TDL), Sical Logistics, a step-down subsidiary of CDEL, and Coffee Day Global, a subsidiary of CDEL.

In addition, the NCDs are secured by corporate guarantees of Tanglin Retail Realty Developers (subsidiary of Tanglin Developments) and CDEL (earlier, personal guarantee of Late Mr V G Siddhartha, founder of group, was also stipulated).