Moody's cuts some Petrozuata bonds to B3

Moody's Investors Service said it downgraded the rating on Petrozuata Finance Inc.'s $755 million in bonds outstanding to B3 from B2. The rating remains under review for further downgrade.

Moody's said the downgrade follows the announcement by Petroleos de Venezuela (rated B1) that it reached agreement with holders of 77% of the Petrozuata's bonds to tender for their bonds at par plus one-third of the early redemption premium specified in the indenture.

The agency said it believes the expected terms of the consent solicitation do not leave a reasonable alternative for bondholders who may be unhappy with the tender offer.

© 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.