S&P lowers MHP, debt to CCC

Standard & Poor's said it lowered its long-term foreign currency corporate credit rating on MHP SA to CCC from CCC+.

The B- long-term local currency rating on the company was affirmed and the outlooks are negative.

The agency also lowered its foreign currency issue rating on the company's senior unsecured debt to CCC from CCC+. The 3 recovery rating on this debt remains unchanged.

S&P said the downgrade of MHP follows the same action on Ukraine and the downward revision of the country's transfer and convertibility (T&C) assessment to CCC from CCC+. It also takes into account that MHP's core operating assets are in Ukraine.

The revised T&C assessment constrains the foreign currency rating on MHP because of the likelihood of increased restrictions on foreign exchange repatriation (transferring currency in and out of Ukraine) and, more generally, negative sovereign interaction.

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