Moody's drops UkrLandFarming, notes to CCC

Standard & Poor's said it lowered its long-term foreign currency corporate credit rating on UkrLandFarming plc to CCC from CCC+ and affirmed its B- long-term local currency corporate credit rating on the company.

The outlook is negative.

The agency also lowered its issue rating on the company's senior unsecured notes to CCC from CCC+. The recovery rating on these notes remains at 4, indicating an expectation of average (30%-50%) recovery in the event of a payment default.

S&P said the downgrade follows its downgrade of Ukraine and downward revision of the country's transfer and convertibility (T&C) assessment to CCC, taking into account that UkrLandFarming's core assets are concentrated in Ukraine.

The revised T&C assessment constrains the foreign currency rating on UkrLandFarming because of the likelihood of increased restrictions on repatriation (transferring currency in and out of Ukraine) and, more generally, negative sovereign impact on the company's credibility.

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