Baku, Azerbaijan, Feb. 13
By Elena Kosolapova- Trend: International Rating Agency Fitch Ratings has downgraded Kazakhstan-based agribusiness company Holding Kazexportastyk JSC's (KEA) Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'C' from 'B' and simultaneously withdrawn all ratings, the agency reported on Feb. 13.
National Long-term rating was downgraded to 'C(kaz)' from 'BB(kaz)'. Senior unsecured rating was downgraded to 'C' from 'B'. National senior unsecured rating was downgraded to 'C(kaz)' from 'BB(kaz)'.
"The downgrade follows the non-payment event on the fifth coupon on its 37.7 billion tenge outstanding corporate bond issue traded on the Kazakhstan Stock Exchange," Fitch said.
In addition, KEA has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for KEA.
In an official letter sent to the Stock Exchange dated 3 February 2014, KEA informed of the delay in payment of the fifth coupon on its bonds, which was due to be paid by 31 January 2014. The delay was due to a cash shortfall and KEA expressed its intention to pay the coupon by 15 February 2014. Failure to pay a missed coupon after a grace period of 10 working days would constitute an event of default.
"Although KEA may be able to meet this payment, Fitch would still have insufficient information to maintain the ratings," the agency said.
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