Fitch drops PIK to CCC

Fitch Ratings said it lowered OJSC PIK Group's long-term issuer default rating to CCC from BB- and short-term issuer default rating to C from B due to liquidity concerns. Ratings were placed on Rating Watch evolving.

The downgrade reflects concern that PIK will not be able to honor upcoming debt maturities, Fitch said.

The company faces sizable maturities in the very near-term and currently has insufficient liquidity to meet them, the agency noted.

PIK's liquidity position has worsened since September, due to the turmoil affecting Russia's financial markets and a weakening residential real estate market, leaving the housebuilder unable to raise substantial new debt finance to refinance its upcoming maturities, the agency said.

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