Moody's cuts Naftogaz' default probability rating to 'Caa2'

Moody’s Investors Service said yesterday that it downgraded Naftogaz of Ukraine from ‘Caa2’ to ‘Ca’ the company’s probability of default rating. The ratings agency left Naftogaz’ foreign currency corporate family rating at ‘Caa2’. The ratings will remain on ratings watch, and the outlook was changed from negative to undefined. Last week Naftogaz said it was offering holders of its USD 500 mln Eurobond due to mature tomorrow, September 30, an exchange for new US dollar-denominated bonds backed by a sovereign guarantee that mature in September 2014 and carry a coupon of 9.5%. October 8 is the early participation deadline for bondholders to vote in favor of restructuring; October 15 is the final voting deadline; and a noteholder meeting is scheduled for October 19.