Quintis suffers another ratings downgrade

Quintis has suffered its fourth credit ratings downgrade within a month, after the troubled Indian sandalwood producer on Tuesday revealed more operational and financial issues.

Ratings agency Moody’s downgraded Quintis’s corporate rating and senior secured debt rating from B3 to Caa1 and maintained the ratings on review for downgrade.

“Moody’s said it had adjusted its rating following the company’s response to an ASX query on June 6 that creates significant uncertainty around the company’s outlook and investment take up in new plantations,” Quintis said in a statement today.

Quintis told the market late on Tuesday that a $27 million sale of one of its plantations in the Northern Territory had been terminated, while previously expected sales to China of about $20 million for FY17 would now range from zero to a maximum of $8 million.

It also withdrew its earnings guidance for the year to June on the back of market volatility and uncertainty surrounding the company.

Moody’s last month downgraded its credit rating on Quintis from B2 to B3, while global ratings agency S&P cut its credit rating on the company twice in May; from B+ to B, and then from B to CCC+.

Quintis shares have been locked in a trade suspension, and will remain so while it continues discussions on a potential corporate transaction.