Moody's lowers Eurasian Natural

Moody's Investors Service said it downgraded the corporate family rating of Eurasian Natural Resources Corp. plc to B1 from Ba3 and the probability of default rating to B1-PD from Ba3-PD.

Concurrently, Moody's downgraded the provisional rating on Eurasian Natural's $3 billion euro medium-term note program to provisional B1 (LGD4, 54%).

All ratings are on review for further downgrade.

"We have downgraded ENRC's CFR to B1 and placed its ratings on review for further downgrade because the turmoil at the Board and senior management level, culminating with the recent resignation of the Chairman, in conjunction with ongoing investigations overseen by the UK Serious Fraud Office (SFO) and a possible bid by the founding shareholders to take the company private, are leading to new degrees of uncertainty and unpredictability over the future direction of the company, its financial policies and governance which are no longer in line with the previous Ba3 rating," Moody's vice president, senior analyst and lead analyst for Eurasian Natural Gianmarco Migliavacca said in a news release.

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