Moody's lowers Naftogaz

Moody's Investors Service said it has downgraded the probability of default rating of NJSC Naftogaz of Ukraine to Ca from Caa2.

Naftogaz's foreign currency corporate family and debt ratings remain unchanged, at Caa2, the agency added.

The ratings remain under review, but Moody's said it has changed the direction to uncertain from possible downgrade.

The rating action reflects the Sept. 24 restructuring offer by Naftogaz, in which Naftogaz invites the holders of the company's $500 million loan participation notes due Sept. 30, 2009 to consent to their restructuring, the agency said.

The decision to retain a Caa2 rating on the bonds reflects Moody's anticipation of a high recovery following default.

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