S&P prunes VF Ukraine

S&P said it lowered its ratings for VF Ukraine and its debt to CCC from CCC+.

“VF Ukraine faces debt restructuring risk because foreign-currency restrictions may complicate the group's ability to repay the $399 million bond maturing in February 2025.

“According to our liquidity calculations, VF Ukraine will have the financial capacity and willingness to repay the bond, thanks to delayed capital expenditure (capex) or minimal local debt issuances (less than 20 % of the outstanding bond balance). We estimate that VF Ukraine's liquidity sources-to-uses ratio for the next 12 months will be slightly above 1x,” S&P said in a statement.

The outlook is negative.

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