TCL downgraded by Fitch Ratings

Trinidad Cement Ltd (TCL) has been downgraded by Fitch Ratings, just days after Standard & Poor’s (S&P) also lowered its corporate credit rating on the Caribbean-based producer.

Fitch’s primary analyst Phillip Wrenn said in a statement that cement company’s foreign and local currency issuer default ratings (IDRs) had dropped to ‘D’ from ‘B-’.

“This downgrade to ‘D’ follows the announcement by TCL’s Board of Directors on 29 September 2014 of a ‘standstill’ on all payments due under existing restructured loan agreements. As a result, TCL missed its debt service payments due on 30 September 2014. These maturities are not subject to a grace period.” He said Fitch considers the missed debt payment an event of default.

The analyst noted that TCL's board of directors had announced a new restructuring plan due to be submitted by 31 October 2014.