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Prospect News home > News index > List of issuers F > Headlines for Ferrexpo plc > News item |
S&P cuts Ferrexpo CCR, notes to CCC
Standard & Poor's said it lowered its long-term corporate credit rating on Ferrexpo plc to CCC from CCC+.
The outlook is negative.
The agency also lowered the long-term issue rating on Ferrexpo's senior unsecured notes due in 2019 to CCC from CCC+.
S&P said the downgrade follows the deterioration in Ferrexpo's liquidity position since the last review in July.
This deterioration is explained by the company's inability to exercise the option to draw additional $150 million under its pre-export finance (PXF) facility. It is also due to a reduction in Ferrexpo's cash balance after the maturity of about $50 million and a dividend of $19 million, the agency said.
In addition, Bank F&C (owned by Ferrexpo's main shareholder), where the company held $175 million, became insolvent in September. While S&P’s previous rating assumed no access to these funds, the insolvency increases lenders' uncertainty and nervousness. This is currently reflected by a yield to maturity of more than 25% on Ferrexpo's bonds.
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