Bulletin: IBC Capital Ltd.'s Protracted Refinancing Increases Rating Pressure

SINGAPORE (S&P Global Ratings) Oct. 10, 2022--Refinancing risks for IBC Capital Ltd.'s (B-/Negative/--) term loan, revolving credit facility (RCF), and letter of credit (LC) facility have compounded. The Singapore-based supply chain solutions company's US$583 million first lien term loan and US$185 million RCF/LC lines as of September 2022, will come due in less than 12 months. These amount to more than 80% of the company's debt structure. As such, we anticipate a material liquidity shortfall by September 2023. IBC Capital held available cash reserves of US$55 million with undrawn availability under its RCF/LC of about US$40 million as of Sept. 30, 2022. However the company will have to repay the RCF/LC by March 2023. Macroeconomic challenges triggered by the Russia-Ukraine

...October 10, 2022 SINGAPORE (S&P Global Ratings) Oct. 10, 2022--Refinancing risks for IBC Capital Ltd.'s (B-/Negative/--) term loan, revolving credit facility (RCF), and letter of credit (LC) facility have compounded. The Singapore-based supply chain solutions company's US$583 million first lien term loan and US$185 million RCF/LC lines as of September 2022, will come due in less than 12 months. These amount to more than 80% of the company's debt structure. As such, we anticipate a material liquidity shortfall by September 2023. IBC Capital held available cash reserves of US$55 million with undrawn availability under its RCF/LC of about US$40 million as of Sept. 30, 2022. However the company will have to repay the RCF/LC by March 2023. Macroeconomic challenges triggered by the Russia-Ukraine conflict have delayed IBC Capital's refinancing progress, which was initially targeted for completion six months ago. Our negative outlook on IBC Capital currently reflects the looming refinancing risks....

Bulletin