S&P downgrades Interpipe to CC

According to Interfax, yesterday Standard & Poor’s downgraded long-term credit rating of Interpipe from B to CC with negative outlook. Rating in local currency was downgraded from uaBBB to uaCC. The downgrade followed the Interpipe’s announcement to launch a tender for the company’s USD 200 mln 8.875% bonds maturing 2010, at about 50% of par value. “Given the clear discount to face value, and the group’s weak credit standing, we consider this offer as distressed and tantamount to a default,” noted Lucas Sevenin, S&P’s credit analyst.