Fitch puts PIK on watch

Fitch Ratings said it placed OJSC PIK Group's BB- long-term issuer default rating and B short-term issuer default rating on Rating Watch negative.

The action reflects the agency's increased concerns over PIK's liquidity position due to the company's high level of short-term debt which, coupled with the recent turmoil in the Russian financial markets, creates a material refinancing risk for the company.

Nevertheless, Fitch said it takes some comfort from PIK's plans to meet its immediate debt requirements by mainly using operational cash flow to repay near-term debt - operational cash flow is expected to be boosted during September-December by a series of sizeable cash receipts for the sale of housing units to the City of Moscow - and the company also plans to raise new financing before the end of 2008, including new bank debt and a ruble bond issue.

© 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.