S&P: KOKS on positive watch

S&P said it placed the B- long-term corporate credit rating on Koks PJSC on CreditWatch with positive implications.

The agency also said it assigned a B- rating to the company's proposed senior unsecured bond and placed it on CreditWatch positive.

The positive watch follows news that Koks is going to place a senior unsecured eurobond of up to $500 million, S&P explained.

The proceeds will be used to repay currently outstanding short-term maturities, including an existing $200 million eurobond, the agency said.

Therefore, S&P said it anticipates a potential meaningful improvement in Koks' liquidity and capital structure, which could support an upgrade to B.

The agency also said it expects Koks will refrain from using the bond's proceeds for large acquisitions of non-core assets or financing current non-core assets.

S&P also said it does not anticipate Koks will make dividend payments from the proposed debt proceeds.

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