Fitch cuts Kazanorgsintez to RD

Fitch Ratings said it downgraded OJSC Kazanorgsintez's long-term issuer default rating to RD (restricted default) from C and its short-term issuer default rating to D from C. The senior unsecured rating on its $200 million 9 ¾% notes has been affirmed at C. All the ratings have been removed from rating watch negative. The recovery rating on the notes is RR6.

On Oct. 30, the company paid the semi-annual coupon on its 9 ¾% notes from operating cash flow, Fitch said.

The downgrade reflects a view that this creates a different treatment between bondholders and bank lenders by the company and represents selective uncured payment default on its bank debt, the agency said.

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