S&P places alert on GiTi Tire

ERJ staff report (DS)

Singapore -- Credit-Rating Agency Standard & Poor's has issued a warning on GiTI Tire over lack of restructuring of a $200 million bond due to mature in January 2012.

As a result, S&P placed GiTi's 'B' long-term corporate credit rating and 'cnBB-' Greater

China scale rating on China-based tyre manufacturer GITI Tire Pte. Ltd. (GITI)

on CreditWatch with negative implications

At the same time, Standard & Poor's placed 'CCC+' issue rating on GITI's

US$200 million 12.25% senior secured notes on CreditWatch with negative

implications, and lowered its Greater China scale issue rating to 'cnCCC+',

from 'cnB', before placing it on CreditWatch with negative implications.

"We have placed the ratings on CreditWatch because of the uncertainty on the

notes refinancing but we understand that the company is currently trying to

arrange refinancing," said Standard & Poor's credit analyst Xavier Jean.

This is an external link and should open in a new window. If the window does not appear, please check your pop-up blocking software. ERJ is not responsible for the content of external sites.

Press release from S & P