September 28, 2009 / 4:42 PM / 10 years ago

Moody's downgrades Naftogaz, sees imminent default

NEW YORK, Sept 28 (Reuters) - Moody’s Investors Service on Monday downgraded the ratings of Ukraine’s Naftogaz, saying it expects the state energy giant to default on its debt this week.

Moody’s cut Naftogaz’s probability of default rating to Ca from Caa2 after the company offered last week to restructure $500 million of notes due on Sept. 30.

The new ratings are now on review with direction uncertain, reflecting the possibility that bondholders “might not agree with the current restructuring offer, which could potentially result in a lengthy court settlement and lower recovery prospects,” Moody’s said in a statement.

Reporting by Walter Brandimarte; Editing by Chizu Nomiyama

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