International rating Agency Fitch Ratings after the Ukrainian DTEK Energy B. V. ("DTEK Energo") debt restructuring has raised its long-term Issuer default rating (IDR) to "B" C "RD" (restricted default), the rating Outlook - "stable".
"IDR "B-" reflects the improved financial flexibility the company after a successful restructuring of the debt exposure to the weak Ukrainian operating environment, the allocation of distribution of assets from 2019, limited liquidity in the long term, high currency risks and an evolving regulatory system (the launch of the new market model – if)," – said in the Agency's report Wednesday.
According to him, Fitch also raised the rating evroobligatsiy "DTEK Energo" in U.S. dollars to "B" with a recovery rating of "RR4".
As reported, the holding company, on 18 November 2019 completed the restructuring of the remaining 245 million dollars of Bank debt on restructuring terms that were offered to all holders of the loans in 2016. They include extending the term of repayment of the debt until 2023 (with a slight depreciation in 2020-2022 gg.) and the conversion of Bank debt in Eurobonds maturing in 2023-2024 years.
According to Fitch, in November-December this year, DTEK needs to pay creditors as part of the restructuring 76 million in 2020 to $ 50 million.
DTEK was established in 2005 to manage the energy assets of the group "SCM" (SCM, Donetsk) of Rinat Akhmetov. The Corporation's delegated functions on strategic management of group companies constituting the vertically integrated chain for the production and enrichment of coal, production and sale of electricity.
"DTEK Energo" is the operating company responsible for the mining of coal, generation and distribution of electricity in the structure of the holding DTEK. In January-June 2019 it cut its net profit by 38.2% compared to the same period of 2018 to 3,342 billion hryvnia by reducing revenue by 35.8% to 53,426 billion.
