S&P: Zlomrex view to negative

Standard & Poor's said it revised the outlook on Zlomrex SA to negative from stable.

The agency also affirmed its CCC+ long-term and B short-term corporate credit ratings, along with the CCC rating on the senior secured notes issued by Zlomrex International Finance SA.

The agency also said it withdrew the CCC+/B ratings on Zlomrex and assigned them to the new holding company Cognor SA at the issuer's request.

The outlook on Cognor is negative, in line with that on Zlomrex prior to the withdrawal, S&P said.

The withdrawal of the ratings in Zlomrex and their assignment to Cognor follows a restructuring in late 2011, when Zlomrex's former subsidiary Cognor became the holding company and Zlomrex became an operating company, the agency said.

The negative outlook reflects deterioration in the economic outlook for Poland, which is weakening Cognor's ability to generate a material amount of free operating cash flow and increasing the refinancing risk associated with the maturity of its €120 million senior secured notes in February 2014, S&P said.

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