Fitch places Ellaktor on negative watch

Fitch Ratings said it placed Ellaktor SA's B long-term issuer default rating on rating watch negative and revised the outlook on Ellaktor Value plc's notes to stable from negative and affirmed the rating at B.

“The RWN follows the completion of the voluntary tender offer by Reggeborgh Invest BV (RBI) and Motor Oil (Hellas) Corinth Refineries SA (MOH), which agreed to enter into a framework agreement that ultimately triggered a change of control event in the notes' documentation. Consequently, in September 2022 the high-yield bond was called, and around three-quarters of the notes were repaid. The remainder will be paid in the coming weeks, resulting in the restricted group being abolished,” Fitch said in a press release.

The agency said it expects Ellaktor will use its backstop facility and then repay the borrowings with the proceeds from the sale of a 75% stake in its renewable energy segment to MOH, which is progressing as expected.

“We expect to resolve the RWN once we have more clarity on the group's planned capital structure, specifically on the amount and type of debt that will remain at the new Ellaktor Group. This may be delayed beyond the next six months,” Fitch said.

The stable outlook on the notes mirrors the likelihood Ellaktor Value’s notes will be repaid, the agency said.

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