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possible resulting in negative credit rating actions and spread expansion," BCS Global Markets commented on March 5. The covenant amendment process implies Domodedovo plans to issue new debt in the near future, the analysts note, reminding that the net debt/Ebitda of Domodedovo breached the 3.0x covenant level in 1H18, hence the company could not attract new debt. But Domodedovo the new RUB-denominated placement would help optimize the debt’s currency structure. "However, we expect net leverage to continue increasing due to the ongoing construction of Terminal 2 and negative free cash flow (-$59mn in 1H18) persisting," BCS warns, adding that "as passenger turnover continues to decline (-4.2% y/y in 2018 and -10.5% y/y in January 2019), additional pressure is put on revenue and EBITDA margin and contributes further net leverage growth.
87 RUSSIA Country Report April 2019 www.intellinews.com