Baku, Azerbaijan, April 9
By Emin Aliyev - Trend:
Standard & Poor's Ratings Services said it lowered its long-term corporate credit rating on Azerbaijan-based diversified company Baghlan Group FZCO (Baghlan) to 'SD' (selective default) from 'B-'. The agency subsequently withdrew the rating owing to the lack of sufficient information from Baghlan, S&P said on April 8.
"The 'SD' rating at the time of withdrawal reflected Baghlan's failure to make the $19 million coupon payment due on Dec. 27, 2013, on its unrated $150 million loan participation notes," according to the statement. "The information about the missed payment has become available to the agency only recently. In addition, the agency understands from Baghlan that it has since made a partial $8 million payment toward the coupon, which is not enough under the agency's criteria to avoid lowering of the rating on Baghlan to selective default."
The agency has withdrawn the rating on Baghlan because the company has failed to provide with adequate and timely information, notably about its liquidity.
"In the absence of sufficient information from Baghlan, the agency is unable to maintain the rating on the company," according to the statement.
Earlier, Fitch Ratings has downgraded Azerbaijani building materials company Baghlan Group FZCO's (Baghlan) Long-term Issuer Default Rating (IDR) to 'Restricted Default (RD)' from 'B-', and withdrawn the rating.
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