Fitch Downgrades Serba Dinamik’s IDR and Sukuk Ratings to B-, Placed on Rating Watch Negative 

Fitch Ratings (Fitch) has downgraded Malaysia-based energy service provider Serba Dinamik Holdings Berhad’s (SDHB) Long-Term Issuer Default Rating (IDR) to ‘B-’ from ‘BB-’. Concurrently, Fitch has downgraded SDHB’s senior unsecured Sukuk (due 2022 and 2025) to ‘B-’ from ‘BB-’ with a Recovery Rating of ‘RR4’. In addition, the ratings have been placed on Rating Watch Negative (RWN).

Ratings Rationale

The downgrade reflects the constraints on SDHB’s liquidity and increased refinancing risk from its short-term debt maturities in 2021, as well as its USD 222 million Sukuk due in May 2022. Fitch believes that SDHB’s access to debt funding to manage its liabilities has been c...