Fitch cuts Bulgarian Energy’s eurobonds

Fitch Ratings said it downgraded Bulgarian Energy Holding EAD’s senior unsecured rating, including the rating of the company’s €550 million due 2021 and €600 million due 2025 bonds to BB- from BB.

“The downgrade of the senior unsecured rating to BB- reflects our expectation that the share of prior-ranking debt to EBITDA will exceed 2x (mostly because of the €1.1 billion debt-like facility added at Bulgartransgaz), increasing structural subordination of bondholders at BEH level,” said Fitch in a press release.

The agency affirmed the company’s long-term foreign- and local-currency issuer default ratings at BB.

The outlook is stable.

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