S&P affirms NEK

Standard & Poor's said it affirmed the BB- long-term issuer credit rating on Natsionalna Elektricheska Kompania EAD (NEK).

The rating also was removed from CreditWatch, where it was placed with negative implications in April.

The outlook is negative.

The affirmation follows NEK's resolution of the immediate threat to its liquidity posed by the maturity of its €250 million syndicated loan on May 21, 2012, S&P said.

NEK achieved this partly by signing a loan agreement to extend €195 million of the loan for another year, the agency said, and partly by repaying the balance with its own cash and a BGN 70 million special-purpose loan from its direct parent, 100% state-owned Bulgarian Energy Holding.

Although NEK has eliminated the immediate liquidity risk, S&P said it believes that the short-term nature of the extension and the partial use of NEK's own cash continue to put pressure on the company's liquidity position.

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