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