S&P cuts EuroChem Group

S&P said it downgraded EuroChem Group AG’s issuer rating to SD (selective default) from CCC-, citing the expiration of the 10-day grace period ending after the company skipped the coupon payment due under its $700 million of 5½% fixed-rate notes, issued by EuroChem Finance DAC. EuroChem guarantees the notes.

“We note that the company has the funds to pay the due interest, but the payment has not been processed due to the administrative difficulties stemming from the application of international sanctions. These measures have restricted the ability of noteholders to receive interest, principal payments, or both, on time and in full,” S&P said in a press release.

The agency said it subsequently withdrew its EuroChem ratings adhering to the European Union decision to ban the provision of credit ratings to legal persons, entities and bodies established in Russia.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.