Research Update: IBC Capital Ltd. Rating Lowered To 'B-' On Refinancing Risk And Elevated Leverage; Outlook Stable

IBC Capital Ltd. (Goodpack), a Singapore-headquartered transportation and logistics company, faces rising refinancing risks on its term loan and revolving credit facility, which come due within the next 24 months. At the same time, we expect leverage at Goodpack to weaken on the back of elevated freight costs and higher capital expenditure. We are lowering our rating on Goodpack to 'B-' from 'B'. At the same time, we are also lowering the issue ratings on Goodpack's first and second lien term loans to 'B-' and 'CCC', respectively, in line with the modest and negligible recovery expectations, respectively. The stable outlook reflects our expectation that Goodpack's business prospects will continue to improve and that the company will manage its upcoming maturities

...- IBC Capital Ltd. (Goodpack), a Singapore-headquartered transportation and logistics company, faces rising refinancing risks on its term loan and revolving credit facility, which come due within the next 24 months. - At the same time, we expect leverage at Goodpack to weaken on the back of elevated freight costs and higher capital expenditure. - We are lowering our rating on Goodpack to 'B-' from 'B'. At the same time, we are also lowering the issue ratings on Goodpack's first and second lien term loans to 'B-' and '###', respectively, in line with the modest and negligible recovery expectations, respectively. - The stable outlook reflects our expectation that Goodpack's business prospects will continue to improve and that the company will manage its upcoming maturities in a timely manner, over the next six months....

Research Update