Fitch lowers Logan

Fitch Ratings said it downgraded Logan Group Co. Ltd.'s long-term foreign- and local-currency issuer default ratings to BB- from BB. The agency also downgraded the senior unsecured rating and the rating on the outstanding U.S. dollar senior notes to BB- from BB and trimmed the rating on Logan's subordinated perpetual capital securities to B from B+.

“The downgrade is driven by Logan's recent disclosure of a private debt arrangement that is off its balance sheet, which was previously not stated in its contingent liabilities in the audited financial statements,” Fitch said in a press release.

According to Logan, the borrower is an unrelated third party. “Logan said it guarantees around $1 billion of the debt and the third party has provided counter-guarantees with onshore assets. The $1 billion guarantee, even if fully called upon, may not cause the company's credit profile to deteriorate in terms of leverage and liquidity to the extent of negative rating action,” Fitch said.

The outlook is negative.

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