Fitch lowers Mirax

Fitch Ratings said it downgraded Mirax Group Holding BV's long-term foreign- and local-currency issuer default ratings to CCC from B-, short-term issuer default rating to C from B and national long-term rating to CCC(rus) from BB-(rus).

The ratings remain on Rating Watch negative.

The agency said the downgrade and Rating Watch reflect significant concerns about Mirax's weak liquidity position. The company has a large amount of debt maturing over the near term - up to $395 million potentially maturing in the first quarter - and currently has insufficient liquidity to meet these payments, Fitch said.

Mirax's ratings were previously downgraded on Jan. 27 as a result of liquidity concerns. At the time, Fitch highlighted that Mirax was undertaking emergency efforts to improve its liquidity position. However, the agency said Tuesday that these actions have yet to be successfully implemented and, given the weak state of the Russian real estate market and the general financing environment, there remains doubt whether these actions will be implemented at all.

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