S&P: Sidetur developing

Standard & Poor's said that it revised the CreditWatch implications for its B corporate credit and senior ratings on Siderurgica del Turbio SA (Sidetur) to negative from developing.

The revision of CreditWatch implications is a consequence of the Venezuelan government's Decree No. 7,786 dated Nov. 3, 2010, ordering the expropriation of Sidetur's assets and related uncertainty regarding the company's ability to keep paying down its debt, the agency said.

The placement considers the company's operating performance during the expropriation period and the amount and timing of the compensation that Sidetur will receive from the Venezuelan government for the sale of its assets, the agency said.

The placement also considers the expectation that the Venezuelan government will provide enough flexibility during the expropriation process for Sidetur to service its debt on time and use the compensation money to amortize the remaining principal, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.