S&P lowers Yioula, Glasstank

Standard & Poor’s said it lowered the long-term corporate credit ratings on Yioula Glassworks SA and its core subsidiary, Glasstank BV, to CCC- from CCC.

The outlook is developing.

S&P also said it lowered to CC from CCC the ratings on the €185 million senior secured notes due 2019 issued by Glasstank.

The ratings were removed from CreditWatch, where they were placed in May 2014, the agency said.

The downgrade reflects a view that Yioula’s refinancing risk has escalated and a default is highly probable within the next three months, absent a favorable conclusion of the renegotiations of its upcoming bilateral lines totaling about €40 million, S&P said.

Yioula is continuing its talks with Eurobank Ergasias SA and Piraeus Bank SA to extend its bank lines currently due in June 2015, the agency said. The negotiations have been in progress for an extended period as the group initiated discussions with the banks during the refinancing process in April 2014, S&P added.

The agency said it believes the weak access to liquidity, along with questions about Greece’s financial stability, might hamper current bilateral negotiations between Yioula and its lenders.

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