Fitch downgrades Cimento Tupi

Fitch Ratings said it downgraded Cimento Tupi SA's foreign-currency issuer default rating to CCC from B-, local currency issuer default rating to CCC from B-, senior notes due 2018 to CCC/RR4 from B-/RR4 and long-term national rating to CCC(bra) from BB+(bra).

The downgrade reflects the company's inability to deleverage or improve its liquidity position despite solid growth in sales volumes during 2014, Fitch said.

The CCC ratings also reflect the company’s small business position, its high leverage and the volatility of its cash flow generation due to the cyclicality of the cement industry, the agency added.

Fitch downgrades Ukreximbank, Oschadbank

Fitch Ratings said it downgraded State Export-Import Bank of Ukraine’s and State Savings Bank of Ukraine’s long-term foreign-currency issuer default ratings and foreign-currency senior debt ratings to CC from CCC and affirmed the banks' long-term local-currency issuer default ratings at CCC, short-term foreign-currency issuer default ratings at C and national long-term ratings at AA-(ukr) as well as affirmed Ukreximbank’s subordinated debt at C. The outlook is stable.

The downgrade follows the announcement by Ukraine's Ministry of Finance on the sovereign's external debt restructuring, in which the ministry indicated that the external debt of Ukreximbank and Oschadbank, alongside that of certain other quasi-sovereign entities, "will be included in the debt operations.” The downgrade reflects Fitch's view that defaults by both banks on their external debt obligations now appear probable given the announcement and the government's full ownership of the banks.

The affirmation of the banks' long-term local-currency issuer default ratings reflects the fact that their local currency-denominated liabilities would not be affected by any restructuring process, the agency said.

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