Moody’s could cut Sinek

Moody's Investors Service said it placed the Baa3 issuer rating of OAO Svyazinvestneftekhim (Sinek) and the Baa3 senior secured rating of the $250 million worth of loan participation notes issued by Edel Capital SA on review for downgrade.

The LPNs were issued for the sole purpose of financing its loan to Sinek Capital SA, a subsidiary of Sinek. The Republic of Tatarstan (Baa3 negative) guarantees the loan.

"The recent rouble depreciation versus the U.S. dollar might trigger a prepayment on part of Sinek's $250 million LPNs. We are putting Sinek's ratings on review for downgrade reflecting our concerns on the possible failure of Sinek to obtain a timely increase of the guarantee or make a timely prepayment of part of the LPN due to limited alternate liquidity and potential delays in the provision of support by the sub-sovereign," Sergei Grishunin, Moody's assistant vice president, analyst and lead analyst for Sinek, said in a news release.

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