Moody’s changes Metinvest PDR rating to limited default

Metinvest’s probability of default rating (PDR) was downgraded to a limited default designation by Moody’s, the rating agency announced on Dec. 2. It also affirmed its senior unsecured rating for its Eurobonds at Caa2.

The PDR change is based on Metinvest’s recent notes exchange, which meets the criteria for a distressed exchange and constitutes default, Moody’s said. The exchange involves trading 77% of its 2015 bonds for new notes maturing in 2017 (75%) and a cash upfront payment (25% of their value).

The outlook for all of Metinvest’s ratings remains negative, stated Moody’s, driven by a negative outlook for its sovereign rating and reflecting the potential for further downgrade.