S&P keeps Yioula on watch

Standard & Poor's said it is keeping its CCC long-term corporate credit ratings on Yioula Glassworks SA and core subsidiary Glasstank BV on CreditWatch with positive implications.

Yioula’s ratings were placed on CreditWatch positive on May 5 and Glasstank’s ratings on May 14.

At the same time, the agency affirmed its CCC ratings on the €185 million senior secured notes due 2019, issued by Glasstank.

S&P said it is maintaining the ratings on CreditWatch because Yioula continues in talks with Eurobank Ergasias SA and Piraeus Bank SA over the extension of bank lines totaling about €40 million, currently due by June 2015.

The agency initially expected these negotiations to close during the course of September 2014 but it now understands that the three parties will finalize discussions within the next couple of months.

In S&P’s view, Yioula's successful extension of its debt obligations with Eurobank Ergasias and Piraeus Bank would translate into a more manageable debt maturity profile, because its yearly commitments would be unlikely to exceed €12 million over the next 24 months, excluding the impact of short-term lines renewed annually.

© 2015 Prospect News.
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