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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)
