S&P: Yioula Glassworks on developing watch

Standard & Poor’s said it revised the CreditWatch on Yioula Glassworks SA and its core subsidiary, Glasstank BV, to developing from positive.

The ratings on both companies were placed on positive watch in May 2014, S&P said.

S&P also said it affirmed the CCC ratings on the €185 million senior secured notes due 2019 issued by Glasstank.

Yioula continues in talks with Eurobank Ergasias SA and Piraeus Bank SA to extend its bank lines totaling about €40 million, currently due in June 2015, the agency said.

Yioula’s successful extension of its debt obligations with Eurobank Ergasias and Piraeus Bank to 2018 would translate into a more manageable debt maturity profile because its yearly commitments would be unlikely to exceed €12 million over the next 24 months, S&P said.

The developing implications reflect the rising downside risks Yioula faces because its talks with the two banks are progressing at a much slower pace than anticipated, resulting in debt commitments now due within less than six months, the agency said.

© 2015 Prospect News.
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