Page 47 - bne IntelliNews Ukraine Country Report May 2017

8.4 International ratings
Ukraine - Rating agency
Sept 2016
Bond rating: Moodys
Caa3 (S)
Bond rating: Fitch
CCC (S)
Bond rating: S&P
B- (S)
8.4.1 International ratings - specific details of rating actions corp/regional etc
Fitch Ratings said on April 6 it has upgraded the long-term issuer default rating of Metinvest (METINV) to B (from RD) with a stable outlook. The holding's senior secured debt rating was upgraded to B/Recovery Rating RR4, or one notch above Ukraine’s sovereign rating. Fitch attributed the upgrade to the firm's "enhanced financial flexibility resulting from the successful restructuring of the company's debt, the abatement of the conflict in the Donbas region and the resilient operations throughout the crisis in Ukraine."
Moody's Investors Service has upgraded the rating of Ukraine's largest iron ore pellet exporter Ferrexpo to 'Caa2' from 'Caa3' with a stable outlook. The move reflected Ferrexpo's improved liquidity and expectations of strong cash flow generation in 2017-2018, with free cash flow expected of around $250mn in 2017 and $70-$100mn in 2018, Moody's said in a statement on April 7.
S&P Global Ratings on April 26 raised its long- and short-term counterparty credit ratings on Ukraine's nationalised PrivatBank to 'CCC+/C' from 'SD/SD' (selective default), with Stable outlook. In December, the Ukrainian government announced the nationalisation of PrivatBank after it failed to fulfill a three-year recapitalisation plan. The bank was found to have a UAH148bn (€5.1bn) hole in its balance sheet as of early December, which at the time was said to be almost entirely due to related party financing. To cover the capital shortfall the Ukrainian government injected capital of UAH117bn (€4.1bn) and bailed-in PrivatBank's non-deposit unsecured creditors for the amount of UAH29.4bn ($1.1bn), including bondholders for the amount of $595mn.
8.5 Fixed income
8.5.1 Fixed income - bond news
Ukraine's leading poultry producer MHP increased its early tender offer price for its Eurobond maturing in 2020 to 103.75% of par (from 102.75%), the company said on April 24. The deadline to apply for the sale of bonds at that price remained April 27. On April 18, the company initiated a tender offer to purchase about $350mn in its 2020 notes of a total of $750mn outstanding. "It looks like MHP was not satisfied with the amount of noteholders applying for the sale, given its $350mn target," Alexander Paraschiy, an analyst at the Concorde Capital brokerage in Kyiv, wrote in a research note.
47 RUSSIA Country Report April 2017 www.intellinews.com