Business Standard

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

Earlier, the rating agency had placed instrument on credit watch with negative implications.

illustration: binay sinha
Premium

Illustration: Binay Sinha

Abhijit Lele Mumbai
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)

Don't miss the most important news and views of the day. Get them on our Telegram channel

First Published: Oct 29 2019 | 11:02 PM IST

Explore News

To read the full story, subscribe to BS Premium now, at just Rs 249/ month.

Key stories on business-standard.com are available only to BS Premium subscribers.

Register to read more on Business-Standard.com