S&P cuts Irkutskenergo

Standard & Poor's said it lowered its long-term corporate credit rating on Irkutskenergo, AO EiE to B- from B+ while it also lowered the Russia national-scale rating to ruBBB- from ruA.

Both ratings were kept on Creditwatch, where they were placed with negative implications on July 22, due to very weak liquidity, the agency noted.

According to S&P, the downgrade reflects its increasing uncertainty about the company's ability to raise financing in time to cover an upcoming obligatory minority share buyback and short-term debt payments.

The minority share buyback was triggered by the demerger of Irkutskenergo's 100% subsidiary Irkutsk Electricity Grid Co., which owns and operates the group's transmission, distribution, and dispatching assets, the agency said.

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