Corporate reorganisations typically impact the credit profile
Since last year, the Singapore-dollar corporate credit market has seen several large and complex corporate reorganisations happening including at Olam Group, Keppel Corporation, CapitaLand Group, Singapore Press Holdings and ARA Asset Management.
Such reorganisations are not new and they follow numerous corporate credit issuers who have been acquirers or targets in mergers and acquisitions (M&A) and privatisation in prior years. Given that such reorganisations invariably impact an issuer’s credit fundamentals and are likely unexpected before their announcement, they offer valuable case studies for bond and perpetual holders who face such event risk.
