S&P cuts NK Yukos to D

Standard & Poor's said it lowered its long-term corporate credit and senior secured bank loan ratings on OAO NK Yukos to D from CC. At the same time, the ratings were removed from CreditWatch, where they had been place on Oct. 31, 2003.

S&P said the downgrade reflects Yukos' default on its Dec. 27 interest payment, which follows the company's bankruptcy filing in the United States and a decision by a U.S. court to impose a temporary restraining order to prevent the auction of Yuganskneftegas, Yukos' core operating subsidiary.

Although events of default had been announced previously on both Yukos' $1 billion syndicated bank facility and its $1.6 billion loan from core shareholders, S&P said the default notices had merely enabled the company's creditors to enforce the security package.

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