Jain Irrigation USD Bond ‘Not Recommended’ By Lucror After Slump

(Bloomberg) -- “The company’s track record of missing guidance, poor communication, serial acquisitions, and the opaque business do not give us the confidence necessary to recommend the bonds,” senior credit analyst Trung Nguyen wrote in a note.

Jain Irrigation’s 2022 bonds rose 1.2 cents to 48.7 on the dollar as of 12:13pm in Hong Kong, according to prices compiled by Bloomberg. They plunged 14.5 cents on Friday, the biggest decline since they were sold in 2017, according to Bloomberg-compiled prices.

Fitch downgraded Jain Irrigation’s rating to B- on Friday, and placed it on rating watch negative, while S&P last week also cut the company by two notches on declining liquidity.

“India is also a particularly difficult place to do distressed investing, due to the challenging bankruptcy regime, which is in its infancy” according to the Lucror.

NOTE: Jain Irrigation last week said it’s making serious efforts to cut debt

--With assistance from Divya Patil.