Moody’s gives Mechel LD

Moody's Investors Service said it assigned a limited default (LD) designation to Mechel OAO's Ca-PD probability of default rating.

Concurrently, the agency affirmed the probability of default rating. There are no changes to Mechel's other ratings, including its Caa3 corporate family rating.

The outlook remains negative.

"Our decision to assign a limited default designation to Mechel's PDR, follows the company's announcement that it had suspended principal and cut interest payments on its debt obligations in the third quarter," Denis Perevezentsev, Moody's vice president, senior analyst and lead analyst for the issuer, said in a news release.

"The Arbitrage Court of Moscow's recent ruling, which acknowledged interest payment default by Mechel on at least one of its credit facilities, confirms the company's statement."

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