S&P trims Petropavlovsk

S&P said it lowered its ratings for Petropavlovsk plc and its senior unsecured debt to B- from B and placed them on CreditWatch with negative implications.

“The downgrade stems from our view of heightened management and governance risks that could potentially hurt Petropavlovsk’s credit quality. Over the past few months, we have noted several developments that highlight two key conflicts: one between the main shareholders and another between the interim CEO and the mines’ key line managers,” S&P said in a press release.

Also, the company failed to release audited results for the first half of 2020 on time, which is an event of default according to its bonds’ documentation, the agency said.

“We aim to resolve the CreditWatch by the end of November, by which time the outcome of the bondholders’ vote on the waiver should be available. In a more likely scenario of the company obtaining the waiver and releasing its accounts for the first half of 2020, we would likely affirm the ratings at B-,” S&P said.

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