Moody's cuts eustream, SPP, EP

Moody's Investors Service said it downgraded to Ba1 from Baa2 the ratings on the senior unsecured notes issued by eustream, as and on the backed senior unsecured notes issued by SPP Infrastructure Financing BV (SPP-IF) and guaranteed by eustream.

The agency assigned eustream a Ba1 long-term corporate family rating and a Ba1-PD probability of default rating and withdrew the company's Baa2 long-term issuer rating, as per the rating agency's practice for corporates transitioning to speculative grade. All eustream's ratings are on review for downgrade.

Concurrently, Moody’s cut to Ba2 from Baa3 the ratings on the senior unsecured notes issued by EP Infrastructure, as and assigned a Ba1 long-term CFR and a Ba1-PD probability of default rating to EPIF and withdrew the company's Baa3 long-term issuer rating, following the agency's practice. All EPIF's ratings are on review for downgrade. The downgrade follows that of eustream's ratings and reflects the credit linkages of EPIF with eustream, the agency said.

However, Moody's confirmed the Baa2 senior unsecured debt and long-term issuer ratings of SPP-distribucia, as. The outlook is negative. This rating action concludes the review for downgrade started on March 3.

“The downgrade of eustream's ratings reflects the company's exposure to the risk of negative credit implications from the severe sanctions imposed on the government of Russia (Ca negative) and certain Russian financial institutions by Western countries which could disrupt the receipt of payments due to eustream from its main counterparty,” Moody’s said in a press release.

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