RPT-Fitch downgrades Ukrainian corporates on sovereign action

Tue Nov 12, 2013 9:25am EST

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Nov 12 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has downgraded 11 Ukrainian companies' ratings, following the agency's rating action on Ukraine's sovereign ratings (see "Fitch Downgrades Ukraine to 'B-'; Outlook Negative" dated 8 November 2013 on www.fitchratings.com).

The agency downgraded Ukraine's Long term foreign and local currency Issuer Default Ratings (IDRs) to 'B-' from 'B' and affirmed the Short-term foreign currency IDR at 'B'. Ukraine's Country Ceiling was downgraded to 'B-' from 'B'. The rating actions on the corporates' foreign currency ratings reflect the effective constraint by the Country Ceiling, while local currency ratings reflect the worsened economic outlook for Ukraine, including the expectation of weaker GDP growth and the risks of a deteriorating business environment that may affect corporates with operations in the country.

The rating actions are as follows:

Avangardco Investmente Plc

Long-term foreign currency IDR downgraded to 'B-'; from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'B-' from 'B'; Recovery

Rating of 'RR4'

National Long-term rating: affirmed at 'AA+(ukr)'; Outlook Stable

Please see 'Fitch Upgrades Avangardco's Local Currency IDR to 'B+'; Affirms Foreign Currency IDR at 'B'' dated 22 May 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

DTEK Holdings B.V.

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Short-term foreign currency IDR: affirmed at 'B'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

Short-term local currency IDR: affirmed at 'B'

National Long-term rating: affirmed at 'AA+(ukr)'; Outlook Stable

National senior unsecured rating: affirmed at 'AA+(ukr)'

DTEK Finance BV's senior unsecured notes and DTEK Finance plc's senior unsecured guaranteed notes downgraded to 'B-' from 'B'; Recovery Rating of 'RR4' Please see 'Fitch Affirms DTEK at 'B', Stable Outlook', dated 25 March 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities.

Ferrexpo Plc

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Short-term foreign currency IDR: affirmed at 'B'

Foreign currency senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

Ferrexpo Finance plc's ranteed notes' senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

Please see 'Fitch Affirms Ferrexpo plc at 'B'; Outlook Negative' dated 3 October 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities Fintest Trading Co. Limited

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating is constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: affirmed at 'B'; Outlook Negative

National Long-term rating: upgraded to 'AA(ukr)' from 'A+(ukr)'; Outlook Stable Please see 'Fitch Affirms Ukraine's Fintest Trading Co. at 'B'; Outlook Negative' dated 10 October 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

Kernel Holding SA

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

National Long-term rating: affirmed at 'AA+(ukr)'; Outlook Stable

Please see 'Fitch Affirms Kernel at 'B'' dated 5 March 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

Lemtrans LLC

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating is constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: affirmed at 'B'; Outlook Negative

Foreign currency senior unsecured rating: downgraded to 'B-' from 'B', Recovery Rating of 'RR4'

Please see 'Fitch Assigns Ukraine's Lemtrans 'B' Rating; Outlook Stable', dated 30 April 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities.

Metinvest B.V.

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Short-term foreign currency IDR: affirmed at 'B'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

Foreign currency senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

Short-term local currency IDR: affirmed at 'B'

National Long-term rating: affirmed at 'AA+(ukr)' ; Outlook Stable

National Short-term rating: affirmed at 'F1+(ukr)'

Please see 'Fitch Affirms METINVEST at 'B'; Outlook Stable' dated 20 June 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

MHP S.A.

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

Foreign currency senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

Please see 'Fitch Rates MHP's Unsecured Bond at 'B'/'RR4'' dated 2 April 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

OJSC Myronivsky Hliboproduct (MHP S.A.'s 99.9% owned subsidiary)

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative

National Long-term rating: affirmed at 'AA+(ukr)'; Outlook Stable

Please see 'Fitch Rates MHP's Unsecured Bond at 'B'/'RR4'' dated 2 April 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

Mriya Agro Holding PLC

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating is constrained by Ukraine's Country Ceiling of 'B-'

Short-term foreign currency IDR: affirmed at 'B'

Long-term local currency IDR: affirmed at 'B'; Outlook Negative

Short-term local currency IDR: affirmed at 'B'

Foreign currency senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

National Long-term rating: upgraded to 'AA(ukr)' from 'A-(ukr)'; Outlook Stable

Please see 'Fitch Upgrades Mriya Agro Holding to 'B'; Outlook Stable' dated 22 January 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

NJSC Naftogaz of Ukraine (Naftogaz)

Long-term foreign currency IDR: affirmed at 'CCC'

Long-term local currency IDR: affirmed at 'CCC'

Senior unsecured foreign currency rating in respect of USD1,595m bond guaranteed by Ukraine downgraded to 'B-' from 'B';; Recovery Rating of 'RR4'

Please see 'Fitch Affirms Naftogaz at 'CCC', Guaranteed Notes at 'B'' dated 11 January 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

OJSC Creative Group Public Limited

Long-term foreign currency IDR: affirmed at 'B-'; Outlook revised to Negative from Positive. The Outlook is constrained by The Ukrainian sovereign Long-term local currency IDR: affirmed at 'B-'; Outlook revised to Stable from Positive

National Long-term rating: affirmed at 'BBB+(ukr)'; Outlook Positive

Please see 'Fitch Rates Creative 'B-'; Outlook Positive; Rates Bond 'B-(EXP)'/RWN' dated 15 April 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

Ukrlandfarming PLC

Long-term foreign currency IDR: downgraded to 'B-' from 'B'; Outlook Negative.

The rating remains constrained by Ukraine's Country Ceiling of 'B-'

Long-term local currency IDR: downgraded to 'B' from 'B+'; Outlook Negative Foreign currency senior unsecured rating downgraded to 'B-' from 'B'; Recovery Rating of 'RR4'

National Long-term rating: affirmed at 'AA+(ukr)'; Outlook Stable

Please see 'Fitch Publishes UkrLandFarming 'B' Foreign Currency IDR; Outlook Stable' dated 7 March 2013 at www.fitchratings.com for Key Rating Drivers and Rating Sensitivities

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