If a rating agency rate your company as "RD" (restricted default) that means the company is in distress and unable to make due interest payments to its bondholders. Serbadk and Evergrande are recently rated as "RD" and therefore are in distress.
Agree on money laundering. If the income are illegal, this raise even higher concern on the business legitimacy. And if everything is fine, can someone explain why it couldn't service its debt on time? The only explainable guess for me, is the "customer" are something fishy. And since this drama ballooned, they are afraid of their cash inflow being seized / traced when investigation gets more serious and stop paying. Hence the liquidity issue now.
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Posted by Blacksails > 2021-12-15 10:26 | Report Abuse
Could be money laundering case whereby its customers are good paymasters