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Hyflux detects more problems for the Singapore bond market: S&P, Companies & Markets



Tue, Apr 09, 2019 – 10:10 AM

S&P Global Ratings said Hyflux may be the first company in training on financial emergencies that will arrive in Singapore, as loan issues change as a recession. favorable.

The organization also noted in its report on April 8 that the credit ratings for the Singapore bank market could be very tiring over the next 12 to 18 months.

“We think there could be more taxes in Singapore as employment could be reduced and investors are getting more elected,” said Bertrand Jabou, the Global Credit Ratings examiner.

"Due to relatively small rates and output in the last five years, the Singapore investors, both institutional and sales, have sometimes chosen to make more dangerous bands, in order to make more money. T Supporting cash from multiple waters means smaller, smaller-scale companies are more vulnerable to economies and borders, "said S&P. T .

Because the global trading environment is less supportive of previous years, a noticeable reduction in employment is more apparent. This can be a case in Singapore, where medium acceleration – the ratio of debt to ebitdate (earnings before interest, taxation, depreciation and integration) – is high – at nearly six hours, S&P identified.

Hyflux recently announced that it will redesign the unsolved bands and S&P considers that conditions are more likely to occur in Singapore, as the impact of more careful investment might have had a more detrimental impact. T refinancing risk.

In S & S's estimates, nearly $ $ 4 billion of the Singapore-dollar corporate bond is rising by the end of 2019. That figure is climbing to US $ 10 billion in 2020, S&P said.

In addition, the credit rating body has identified four main employees from two Hyflux pages.

First, no region is free from financial problems. Singapore has devastating conditions over the last two or three years has been limited to the energy and goods sectors following fluctuating prices, S&P noted. Some examples such as Swiber Holdings and KrisEnergy in 2016 are; as well as Ezion Holdings and Nam Cheong in 2017.

“But in 2015, telecom services PT Trikomsel Oke Tbk shows that even companies in defense areas that are well understood, have the strength and capacity to grow, they are likely to experience financial problems as well as growth potential. a fundamental risk if they are largely dependent on debt for the expansion, and that they do not have an appropriate management of their finished material.

Second, there can be rapid growth for firms with a narrow or uncertain quality of employment, S&P said. This means lenders should have done everything they can, and look after their money after making an investment.

"Following some operational performance in recent years, Hyflux got into court for courtship in May 2016. The figures at that time recommended that the capital structure of the company was stable, with a combination of combined t The assessment of net debt to Ebitda above 10 hours in 2015, and the negative Ebitda in 2014, led by performance cases at the company's disinfection and power plant.

Retired in 2016 by the $ 179 million Ebitda, Hyflux delivered a negative email of S $ 68 million in 2017, and closed its operating costs to S $ 256 million in 2018 in the nine t months to the end of September. At September 30, 2018, S $ 508 million's short-term debts and S $ 194 million, were reviving a capital structure that could be raised as a result of their employment increase, and S&P declared.

Third, loss can be hard depending on the features of outstanding debt instruments. This is because the market has seen complex debt instruments compared to unsecured notes, S&P said.

“In 2012, for example, Genting Singapore plc delivered a total of $ $ 2.3 billion in permanent sub-duties in two different departments, S $ 1.8 billion for institutions and S $ 500 million for sales investors. .

“Hyflux asks the licensee's permission to restructure S $ 2.8 billion of duties. As company publications do make progress at senior lenders, and lenders may not underestimate the percentage, representing the higher credit risk they have carried t .

Finally, S&P also noted that owners should not give assumptions about the importance of a private company to the government, and therefore support them that might have been.

On 1 April, the Parliament announced that taxpayers' money will not be used to mitigate the financial burden on Hyflux. T

“This means that water security is an important issue in Singapore, making sure Hyflux work is important to the country, it might not be enough to support the government, without a strong connection, that is , ownership, "said S&P.


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