S&P reviews Eurasian Resources

Standard & Poor's placed its B-/B corporate credit ratings on Eurasian Resources Group Sarl on CreditWatch with negative implications.

The CreditWatch placement reflects the possibility that S&P could lower the ratings if Eurasian Resources’ liquidity further deteriorates.

Although Eurasian Resources recently signed an agreement with one of its main lenders, and S&P understands that the signing of a further agreement with the company's other lender is imminent, these agreements (to refinance a total $5.7 billion of debt) would remain unavailable until various conditions are satisfied.

Moreover, S&P believes that Eurasian Resources needs to secure additional funds to finance an expected widening free operating cash flow deficit in 2016, as commodities continue to trade at very low levels.

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