Standard & Poor’s has decreased the long-term credit rating of iron ore pellets manufacturer Ferrexpo Plc owned by Konstantin Zhevago from CCC to SD and its short-term rating from C to SD.
Rating of priority bonds worth $286 million has also been decreased – from CCC to D.
As was said in the Standard & Poor’s statement, the decrease was caused by Ferrexpo declaring that 90% of the shareholders had agreed to exchange their bonds for new ones.
“According to our criteria, we see this deal as a stress offer equaling a default, taking into account our estimate of the company liquidity indexes as weak, company creditability and the fact that minor shareholders would have to make this exchange”, said the rating company in its statement. (Ukrainian Metal)