Moody’s cuts MHP default rating

Moody’s Investors Service said it cut MHP SE’s probability of default rating to Ca-PD from Caa3-PD but affirmed its Caa3 corporate family rating.

"The downgrade of MHP's PDR to Ca-PD reflects (1) Moody's view that the company does not have sufficient liquidity to repay the $500 million eurobonds due May 2024, which elevates the risk of default and (2) expectations that the challenging macro-economic environment in Ukraine (Ca stable), including disruption to infrastructure and population displacement, will continue to weigh on the company's performance," said Sebastien Cieniewski, Moody's lead analyst for MHP, in a press release.

As of Sept. 30, the company had about $317 million in cash.

The outlook remains negative.

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