Serba Dinamik has been downgraded by two notches to B- from B+ by S&P this morning. The rating agency cited “reduced funding access” as the reason for the downgrade and placed the Malaysian corporate on CreditWatch Negative. S&P added that the company faces increased refinancing risk on its dollar sukuk due May 2022 on the back of “weakened market access due to a pending special independent review.” It added, “In our opinion, efforts to restore capital providers’ confidence in Serba Dinamik’s operations are likely to take months, even if the company completes the independent review. With less than 12 months from the May 2022 maturity of its sukuk, the limited time frame to both refinance and complete the independent review creates significant uncertainty.”

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