S&P cuts Borets, notes to B+

S&P said it lowered its long-term corporate credit rating on Borets International Ltd. to B+ from BB-.

The outlook is stable.

At the same time, the agency lowered the Russia national scale rating on Borets to ruA+ from ruAA-.

The ratings were removed from CreditWatch, where they were placed with negative implications on March 1.

In addition, S&P lowered its issue rating on the $413 million unsecured notes issued by Borets' wholly owned finance subsidiary Borets Finance Ltd. to B+ from BB- and removed the rating from CreditWatch negative.

S&P said the downgrade follows the continued weakening of the Russian ruble versus the U.S. dollar, which has heightened the currency mismatch between Borets' revenues and debt, leading to weaker credit metrics than previously expected.

Borets generates about 70% of its revenues in rubles, based on the current exchange rate and the breakdown between its Russian and international businesses. More than 90% of its debt and reporting is denominated in U.S. dollars.

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