Fitch lowers DTEK Energy

Fitch Ratings said it downgraded DTEK Energy BV’s long-term issuer default rating to RD (restricted default) from C as the company is in the payment default under several bank loans due to uncured expiration of the grace period on some bank debt.

Under the agency’s criteria, Fitch said the expiration of any applicable grace period following a payment default on a bank loan, capital markets security or other material financial obligation indicates an RD rating.

The grace period under most of DTEK’s bank loan installments has passed and DTEK failed to make principal payments due at the end of February, the agency said.

Some of its banks lenders subsequently issued the company with a reservation of rights letter, Fitch added.

The ratings also consider that the company has not entered into bankruptcy filings, administration, receivership, liquidation or other formal winding-up procedure, the agency said, and has not otherwise ceased operating.

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