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.
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...
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