Moody’s drops DTEK Energy PDR to D-PD

Moody's Investors Service said it downgraded the probability of default rating of DTEK Energy BV to D-PD from Ca-PD.

At the same time, the agency affirmed DTEK's corporate family rating Ca rating and the Ca rating of DTEK Finance plc's $750 million 7 7/8% notes due April 4, 2018 with a loss given default (LGD) assessment of LGD4/50%.

The outlooks remain negative.

Moody’s said the action was prompted by DTEK's inability to make the $29.5 million scheduled interest payment on its $750 million notes and the $8.3 million on its $160 million notes (unrated) within the 30-day grace period following its due date on April 4 and March 28, respectively, as stipulated in the notes' terms.

The agency sees this event as a default.

However, on April 26, the company managed to enter into a standstill agreement with noteholders until Oct. 28. These missed interest payments followed the company's failure to make scheduled principal and interest payments due to its bank creditors.

Moody’s understands that as of April 1, DTEK's missed interest and principal payments to the banks totaled around $720 million.

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