Fitch keeps TMM on watch

Fitch Ratings said it is maintaining the Rating Watch negative on TMM Real Estate Development plc's long-term foreign- and local-currency issuer default ratings of CC and national long-term rating of B(ukr). Ratings were placed on watch Dec. 2, 2008.

The watch reflects acute concerns about TMM's weak liquidity and poor conditions in the Ukrainian residential property market, according to the agency.

TMM's liquidity continues to be constrained by a lack of back-up liquidity relative to its short term debt maturities of $24 million, and Fitch said it forecast negative free cash flow of about $44 million over the next 12 months.

The company may be unable to repay or refinance its upcoming debt obligations, the agency noted.

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