Moody’s cuts Sinek, Edel Capital notes

Moody's Investors Service said it downgraded Svyazinvestneftekhim OAO (Sinek)’s corporate family rating to Ba2 from Ba1 and probability of default rating to Ba2-PD from Ba1-PD.

At the same time, the agency downgraded the senior secured rating of the $250 million's worth of loan participation notes issued by Edel Capital SA for the sole purpose of financing its loan to Sinek Capital SA, to Ba2 from Ba1.

The loan is guaranteed by the Republic of Tatarstan, which wholly owns Sinek.

The ratings remain on review for further downgrade.

Concurrently, Moody's lowered the baseline credit assessment of Tatarstan's key oil and gas company, Tatneft OAO, to ba1 from baa3 while maintaining the company's Ba1 corporate family rating and Ba1-PD probability of default rating on review for further downgrade.

The agency also decided to extend the review for downgrade on the Ba3 corporate family rating and Ba3-PD probability of default rating of Tatarstan's major petrochemical company, Nizhnekamskneftekhim PJSC, and the Ba3 senior unsecured notes rating issued by NKNK Finance plc.

These actions follow Moody's Feb. 24 decision to downgrade the sub-sovereign rating of the Republic of Tatarstan, the affected companies' major shareholder, to Ba2 from Ba1.

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