Moody's downgrades ENRC

Moody's Investors Service said it downgraded Eurasian Natural Resources plc's corporate family rating to Ba3 from Ba2.

Concurrently, Moody's downgraded the provisional rating on ENRC's $3 billion euro medium-term note program to provisional Ba3/LGD4.

The outlook was changed to negative from stable.

"Today's rating action reflects ENRC's more aggressive acquisition and financial policy, which is likely to lead to a deterioration in the issuer's financial profile, whilst putting pressure on liquidity, due to the large cash outflows related to aggressive M&A activity, and the substantial capital expenditure plan," Moody's vice president, senior analyst and lead analyst for ENRC Gianmarco Migliavacca said in a news release.

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