Moody's drops Astana to Ca

Moody's Investors Service said it downgraded the long-term issuer and debt ratings of Astana Finance to Ca from B3 and placed ratings on review for further downgrade.

The downgrade was triggered by the company's suspension of payments on its public debts, according to the agency.

"Astana Finance committed a breach of covenants on its liabilities that triggered accelerated repayment of its debts. The company's liquidity profile was not in a position to absorb the accelerated debt claims of its creditors, thus leading to a distressed liquidity profile," Semyon Isakov, a Moody's analyst, said in a statement.

Moody's also said it expects that the distressed operating environment will result in a substantial erosion of the company's capital base primarily deriving from its historically high foreign exchange risk appetite together with the recent local currency devaluation, high exposure to the distressed construction and real estate sectors and an overall ongoing impairment of the company's assets.

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