a-drop-in-the-ocean

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.
July 26, 2006
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, SPÆs credit analyst Bei Fu stated that, ôgiven a deterioration in the groupÆs cash position, OGH does not have the sufficient cash to repay short-term debt past due.

The downgrade to junk status effectively...
¬ Haymarket Media Limited. All rights reserved.

FinanceAsia has updated its subscription model.

Registered readers now have the opportunity to read 5 articles from our award-winning website for free.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences.

To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222

Article limit is reached.

Hello! You have used up all of your free articles on FinanceAsia.

To obtain unlimited access to our award-winning exclusive news and analysis, we offer subscription packages, including single user, team subscription (2-5 users), or office-wide licences. To help you and your colleagues access our proprietary content, please contact us at [email protected], or +(852) 2122 5222