Fitch rates DTEK Energy bonds at CCC
14 June 2021
Fitch Ratings has assigned a CCC rating to the new
Eurobond of DTEK Energy (DTEKUA), according to the agency’s June 11 report. The
company’s long-term foreign and local currency ratings increased to CCC from
RD, which reflects Fitch’s “assessment of DTEK’s post-restructuring capital
structure and business risk.” Recall, DTEK Energy completed its debt restructuring in mid-May,
following which it issued its new 6-year USD 1,645 mln Eurobond along with a
5-year Eurobond of related company DTEK Oil & Gas for USD 425 mln. Fitch
analysts expect DTEK Energy’s EBITDA will be flat yoy in 2021 (vs. about USD
350 mln in 2020, based on our estimates), with a slight increase of electricity
volumes and achieved prices this year.
Two weeks ago, Moody’s raised DTEK Energy’s corporate
family rating to Caa3 from Ca on the company’s completion of debt restructuring.
Alexander Paraschiy: In general,
we agree with Fitch that currently there are few reasons to expect any
breakthrough in DTEK Energy’s EBITDA growth this year, taking into account that
electricity prices and volumes are not growing much. If there are no radical
changes on Ukraine’s electricity market, DTEK Energy’s annual EBITDA would
reach USD 250-400 mln in the mid-term, which would be just enough to do some
capacity upgrades and pay interest under its bonds (about USD 115 mln since 2022).
