Fitch downgrades DTEK Energy to RD on missed payments

Fitch Ratings has downgraded DTEK Energy’s (DTEKUA)
Long-Term Foreign Currency Issuer Default Rating (IDR) to RD from C, the agency
reported on Apr. 2. The second downgrade in a week
reflects Fitch’s understanding that the company missed its interest and bond
coupon payments, due on Mar. 31 and Apr. 1.

Alexander Paraschiy: There is no
surprise in Fitch’s downgrade. We are looking for any information from the
company on the true reasons for its decision to miss the payments, as well as
on a restructuring offer.

Meanwhile, Energy Ministry statistics indicate that
DTEK Energy’s thermal power plants consumed 763 kt of coal in March. This is
27% less m/m and 38% less yoy (on a like-to-like basis, excluding DTEK’s
Luhasnka Power Plant, which has consumed no coal since August). We estimate
that DTEK Energy’s total decline in power generation in 1Q20 was 10% qoq and
36% yoy.