Moody's cuts Ronesans

Moody's Investors Service said it downgraded Ronesans Gayrimenkul Yatirim AS’ corporate family rating to Caa1 from B2 and its $300 million of senior unsecured notes due 2023 to Caa2 from B3.

“The downgrade of RGY's CFR to Caa1 reflects Moody's view that the company's credit profile has weakened well beyond our initial expectations following the significant weakening that has occurred in the Turkish lira relative to the euro (29% since June 30, 2021) and dollar (31% since June 30, 2021). This will make it more expensive to service and repay its euro- and dollar-denominated debt which comprise around 80% of total debt,” Moody’s said in a press release.

Moody's said it forecasts RGY's net leverage (measured as net debt/ EBITDA) to be around 15x in 2022 and fixed charge cover (EBITDA/ interest expense) to be near 1x. “While RGY's rental income hedging policy provides protection over the short term, it does not shield its foreign-currency debt exposure against future lira weakness beyond 12 months.”

The outlook remains negative.

© 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.