Moody’s could lift KOKS, rates notes B2

Moody's Investors Service said it placed the B3 corporate family rating and B3-PD probability of default rating of PJSC KOKS on review for upgrade.

The agency also placed the B3 senior unsecured rating assigned to the existing $201 million loan participation notes issued by KOKS Finance DAC on review for upgrade.

Concurrently, Moody's assigned a provisional B2 senior unsecured rating to the proposed notes of up to $500 million to be issued by KOKS Finance.

Pending the conclusion of the review for upgrade on the ratings, the outlook is also under review.

Moody’s said the review for upgrade reflects its expectation that the company's liquidity will materially improve if it successfully completes the announced transaction, which comprises a tender offer for $201 million in outstanding notes due 2018 and the concurrent placement of the proposed long-term notes of up to $500 million.

“If the transaction completes in line with Moody's expectations, such that the company had sufficient liquidity to cover its debt maturities and other obligations over at least the next 12-18 months, Moody's would likely upgrade KOKS's ratings by one notch to B2,” the agency said in a news release.

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