Fitch places Eurohold Bulgaria on watch

Fitch Ratings said it placed Eurohold Bulgaria AD's long-term issuer default rating and senior unsecured rating of B on rating watch negative. The senior unsecured bond has an RR4 recovery rating.

“The rating action follows the Romanian insurance regulator's (ASF) announcement on March 17, 2023 that it has withdrawn the insurance license of one of Eurohold's large subsidiaries, Euroins Romania Asigurare-Reasigurare SA's (Euroins Romania; CC/rating watch evolving) and appointed an interim administrator, and that it intends to open bankruptcy proceedings for Euroins Romania,” Fitch said in a press release.

This action constitutes a default under the terms of Eurohold’s BGN 96 million of bonds.

On Wednesday, Eurohold launched the consent solicitation in relation to its €70 million of bonds due in 2026, of which €41 million is outstanding. Eurohold wants noteholders' consent to waive historical, present or future events of default relating to Euroins Romania, and consent to exclude Euroins Romania from the definition of a "material subsidiary" under the events of default under the bond documentation, Fitch noted.

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