Fitch cuts Mountain Province

Fitch Ratings said it downgraded Mountain Province Diamonds Inc.'s issuer default rating to CC from CCC. The agency also lowered the senior secured notes to CC/RR4 from CCC/RR4.

“The downgrade reflects the increasing uncertainty MPVD will be able to obtain financing to address the notes due December 2022 and Fitch's view that the company may need to pursue a distressed debt exchange in the next four months in order to avoid bankruptcy,” the agency said in a press release.

MPVD’s ability to refinance the notes remains highly uncertain, although Fitch said it views this as partially offset by a supportive majority shareholder, billionaire Dermot Desmond.

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