Moody's upgrades DTEK Energy

Moody's Investors Service said it upgraded the corporate family rating of DTEK Energy BV to Caa3 from Ca and changed the outlook to stable from developing. Concurrently, Moody's raised DTEK Energy's probability of default to Caa3-PD from C-PD.

The rating action follows the company's May 17 announcement on completing the restructuring of substantially all the group's debt. “This agreement resolves the default that has been occurring since the company suspended interest payments in March 2020,” Moody’s said in a press release.

Under the terms of the restructuring, the notes and most bank facilities have been cancelled and replaced by new notes issued by DTEK Finance plc, a subsidiary of DTEK Energy, and new notes issued by DTEK Oil and Gas, a sister company in the DTEK group. The new notes have a principal amount of $425 million and the new DTEK Finance plc notes a principal of $1.645 billion.

The new outlook reflects the view that the current ratings adequately reflect the company's weak position and elevated probability of default, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.