S&P cuts issuers with Russian operations

S&P Global Ratings said it lowered its long-term issuer credit ratings on five corporate entities that are incorporated outside Russia but have significant operations inside it.

S&P lowered the ratings CC from CCC- of Borets International Ltd., Eurasia Drilling Co. Ltd., Evraz plc, X5 Retail Group NV and Yandex NV.

The CC rating reflects Russia’s transfer and convertibility (T&C) assessment. “We lowered our foreign-currency ratings on the five companies in line with our T&C assessment, given the numerous currency restrictions that were imposed by the Central Bank of Russia. This reflects the increasing reported difficulties of companies meeting debt-service payments to their bondholders in foreign currency. The payment difficulties stem from international sanctions that reduce Russia's available foreign exchange reserves and restrict its access to the global financial system, markets and infrastructure,” S&P said in a press release.

All ratings remained on CreditWatch with negative implications and were subsequently withdrawn.

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