Moody’s drops Sinek IDR, Edel Capital notes

Moody's Investors Service said it downgraded the rating of Svyazinvestneftekhim OAO (Sinek) to Ba1 from Baa3 and converted the company's long-term issuer rating into a corporate family rating, in line with its practice for corporates with non-investment-grade ratings.

Concurrently, the agency assigned a Ba1-PD probability of default rating to Sinek.

Moody's also downgraded the senior secured rating of the $250 million worth of loan participation notes issued by Edel Capital SA for the sole purpose of financing its loan to Sinek Capital SA, a subsidiary of Sinek, to Ba1 from Baa3. The loan is guaranteed by the Republic of Tatarstan, which wholly owns Sinek.

The ratings remain on review for further downgrade.

Moody’s said these actions follow the weakening of the Republic of Tatarstan's credit profile as captured by its Jan. 20 decision to downgrade the republic's rating.

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