Moody's Downgrades RussNeft's CFR to Caa2, PDR to Caa3-PD; Negative Outlook

Moody's Investors Service (Moody's) has today downgraded RussNeft PJSC's (RussNeft) corporate family rating (CFR) to Caa2 from Caa1 and probability of default rating (PDR) to Caa3-PD from Caa1-PD. RussNeft's outlook remains negative,Yahoo! Finance reported. Today's downgrade of RussNeft's PDR to Caa3-PD reflects a significantly increased likelihood of default, including a potential debt restructuring, over the next 12-18 months on the company's financial debt represented mostly by a bank loan of total outstanding $1.17 billion as of year-end 2019, because of the company's persistently very weak liquidity, which has been amplified by the severe drop in oil prices and aggressive liquidity management. The downgrade of RussNeft's CFR to Caa2, one notch above the PDR, reflects Moody's expectation that the recovery rate on the debt in case of default could be higher than 65%. Read more