Fitch puts Koks on watch

Fitch Ratings said it placed OAO Koks Group’s long-term foreign-currency issuer default rating of B on Rating Watch negative, along with its short-term issuer default rating of B and long-term local-currency issuer default rating assigned at B.

The agency said it also placed on negative watch the B senior unsecured ratings on Koks Finance Ltd.’s eurobond issues due in 2016 and 2018.

The negative watch reflects the risk of Koks’ failure to repay short-term debt and it is unlikely that it will be repaid, the agency said.

The ratings reflect the company’s performance, which was in line expectations except for its debt, which increased in 2015 due to the ruble’s sharp de-valuation against the U.S. dollar, Fitch said.

The ratings also consider its small size and limited operational diversification compared with other Russian steel companies, the agency said.

© 2015 Prospect News.
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