Moody’s: IG Seismic in limited default

Moody’s Investors Service said it confirmed the B3 corporate family rating of IG Seismic Services plc.

The probability of default rating also was confirmed at B3-PD and a limited default (LD) indicator was assigned, Moody’s said.

The outlook is negative.

This action concludes a review that began in September, the agency said.

The LD designation reflects a view that the recent bond exchange constitutes a distressed exchange under a definition of default, Moody’s said.

Moody’s said it will remove the LD designation from the probability of default in two business days.

The ratings reflect the recently announced refinancing of IG Seismic’s RUB 3 billion bond due in 2018 via the exchange for an amortizing RUB 3 billion bond due in October 2019.

The bond exchange allowed the company to successfully remove the risks related to the put option on the existing bond that could be exercised as of Oct. 24.

The company’s liquidity profile still remains fairly weak, given the negative free cash flow expected in 2016 to 2017 and substantial debt-service requirements, which will require additional financing in 2017.

The agency said it positively acknowledged the evidence of the company’s strong relationship with its key creditor, Bank Otkritie Financial Corp. PJSC and expects that it will continue to support IG Seismic going forward by providing the necessary financing.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.