Friday 14th December 2001 |
Text too small? |
Moody's Investor Services on Wednesday downgraded Carter Holt's long-term debt to Baa3, just one notch above junk status.
It cited Carter Holt's weak cashflow and low return on assets.
It also blamed Carter Holt Harvey's relatively high level of dividend payout, which had reduced the forest products company's ability to fund expenditure and pay off debt.
But Moody's noted several of Carter Holt's key units had reached the bottom of the business cycle and could look forward to an earnings recovery in the short term.
The downgrade affects about $1.2 billion of debt.
Moody's said it expected Carter Holt Harvey to use about $200 million of cash on hand to partly pay back a $US150 million ($366 million) Yankee bond due in April.
"In Moody's opinion the company's debt level relative to its cyclical performance and cashflow is high for the original rating level," a statement said.
No comments yet
IKE 1Q FY26 Performance Update
July 29th Morning Report
General Capital Annual Shareholders Meeting Results
MEE - Receivers and Liquidators appointed to King Honey
2 Cheap Cars Group Updates Performance Outlook for FY26
Spark announces Director changes as part of Board renewal
July 28th Morning Report
KMD Brands announces new Group Chief Financial Officer
Commerce Commission to issue SOI re Viridian application
FBU - Moody's affirms FBU Baa3/stable rating