Ukraine

Akhmetov's DTEK slumps to almost default level by Fitch

17 march 2015 | 16:00

The ranking of the largest domestic energy holding is now even lower than Ukraine's. 

ДТЕК DTEK
Akhmetov’s DTEK slumps to almost default level by Fitch
The international rating agency Fitch Ratings has downgraded by two levels, from "CCC" (possible default) to "C" (default is inevitable), the long-term Issuer Default Ratings (IDR) of Akhmetov's DTEK in foreign and national currencies.

The downgrade is caused by the company's low level of liquidity, explains the Fitch's press release.

A month ago, the agency confirmed the long-term default ratings for DTEK, despite the fact that ratings of other large companies were also lowered following the rating of Ukraine. Then Fitch analysts argued that the ratings of DTEK "reflect the independent position of the company, but are constrained by risky activities in the conflict zone, a weak operating environment, high refinancing and currency risks."

Read more: Akhmetov's SCM announces about seizing "Ukrtelecom's" office in the Crimea

Nevertheless, the agency admitted a downgrade if the holding would not be able to provide refinancing to pay off $ 200 million of Eurobonds in the coming weeks, deadline for which had to expire on April 28, 2015.

Three days ago, the holding reported that DTEK lost UAH 19.7 billion in 2014 comparatively to nearly UAH 3 billion profit last year. The losses were explained by military operations and worsening economic situation in Ukraine.

Source: ZN.UA

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