Moody’s cuts O1 Properties, debt

Moody's Investors Service said it downgraded O1 Properties Ltd.’s corporate family rating to B3 from B1 and probability of default rating to B3-PD from B1-PD and O1 Properties Finance JSC’s and O1 Properties Finance plc’s senior unsecured instrument ratings to B3 from B1.

The agency left all the ratings on review for further downgrade.

The action follows O1 Group’s May 10 announcement that it defaulted on its obligations to repurchase a RUB 13.9 billion domestic bond after a technical default on the interest payment under this bond on May 4, 2018.

“The rating action reflects a heightened degree of uncertainty over O1's future financial profile due to the evolving adverse developments affecting its majority shareholder, further exacerbated by the lack of transparency and disclosure at the level of O1 Group,” Moody’s said in a news release.

“Given the complexity of credit linkages between O1 and its parent, it is difficult at this point to estimate how the distress of the latter may ultimately affect O1's credit standing.”

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