Fitch downgrades Investgeoservis

Fitch Ratings said it downgraded JSC Investgeoservis's long-term foreign- and local-currency issuer default ratings to B- from B+ and placed ratings on Rating Watch negative due to concerns about the company's near-term liquidity.

The downgrades also consider a view that the company's cash balances and committed credit lines may not be sufficient to cover upcoming debt maturities and working capital movements, Fitch said.

The refinancing risk is compounded by several technical accidents and delays in the second half of 2018, the agency said.

Fitch said it understands from management that Investgeoservis is negotiating additional credit lines with existing and potential new banks.

The rating watch will be resolved when more is known about the company's liquidity, including its ability to raise new funding and receive waivers for the potential covenant breaches, the agency explained.

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