Fitch drops KazakhGold

Fitch Ratings said it has downgraded KazakhGold Group Ltd.'s long-term issuer default rating to C from CCC and downgraded KazakhGold's senior unsecured rating to C from CCC.

The downgrades resolve the rating watch negative which had been assigned to both ratings, the agency said, adding that the recovery rating for the senior unsecured debt is RR4.

The downgrade follows KazakhGold's failure to make a coupon payment of $9.375 million on its $200 million of senior unsecured notes, which was due on May 6.

KazakhGold had informally stated that the reason for the payment delay was technical and that it intended to pay the coupon within a 30-day cure period as required by the bond documentation, Fitch added.

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