A drop in the Ocean

AsiaÆs high-yield debt market was dealt another blow when Ocean Grand Holdings was downgraded to single-D from single-B by Standard & PoorÆs after the announcement that it does not have sufficient resources to service its short-term debt.

In a market that has been beleaguered by volatility and widening spreads, news that a bond issue that priced less than seven months ago is in possible default could be a death knoll for AsiaÆs stand-alone corporate high-yield space.

On Tuesday, Standard PoorÆs downgraded Ocean Grand Holdings OGH some 11 notches to single-D from single-B following an announcement that the Hong Kong Securities and Futures Commission HKSFC is investigating OGH after apparent accounting irregularities came to light. In its report,...

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