Moody’s drops KOKS CFR to B3

Moody's Investors Service said it downgraded KOKS' corporate family rating to B3 from B2 and probability of default rating to B3-PD from B2-PD.

The senior unsecured rating assigned to loan participation notes issued by KOKS Finance Ltd. is unchanged at B3 (LGD 4).

All ratings remain on review for downgrade.

Moody’s said the action reflects KOKS' persistently very weak liquidity and the heightened refinancing risk related to its significant short-term debt maturities, resulting from the company's continuing aggressive liquidity management amid the fragile market environment for pig iron and coke.

The company is increasingly dependent on new external funding to remain liquid even in the near-term.

The review for downgrade reflects the uncertainty over KOKS' ability to procure the necessary funding in a timely manner to meet its short-term debt maturities over the next 12 months, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.