Fitch upgrades Kernel, MHP

Fitch Ratings said it upgraded Kernel Holding SA's and MHP SA's long-term foreign-currency issuer default rating to B- from CCC.

The upgrades follow the upgrade of Ukraine's long-term foreign- and local-currency issuer default ratings to B- from CCC.

Ukraine's country ceiling also was upgraded to B- from CCC.

The agency also affirmed Kernel’s national long-term rating at AA+(ukr).

Kernel's local-currency issuer default rating of B is one notch higher than Ukraine's local-currency issuer default rating of B-, reflecting the company's limited reliance on Ukraine's banking system, Fitch said.

MHP’s foreign-currency senior unsecured rating also was upgraded to B- from CCC with a recovery rating of RR4.

The negative outlook reflects the weak liquidity position of MHP, its high foreign-currency and refinancing risks, tight headroom under its euro-bond leverage covenant and a moderately aggressive financial policy, the agency said.

The ratings also are supported by MHP's flexibility over future dividends and expansion capital expenditure that provide some room for managing its free cash flow in view of forthcoming debt repayments, Fitch said.

© 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.