Ekosem-Agrar: Creditreform “technically” downgrades rating due to bond extension
22 March 2016 Corporate News
- Company rating downgraded from CCC (watch) to D as expected
- Rating system classifies bondholders’ approval of bond extension as temporary default
Walldorf, 22 March 2016 – As had been expected, Creditreform Rating has downgraded the company rating of Ekosem-Agrar GmbH, the German holding company of Russian milk producer Ekoniva Group, from CCC (watch) to D. According to Creditreform’s rating system, the bondholders’ decision in favour of the extension of the corporate bonds ESA 2012/17 (ISIN DE000A1MLSJ1) and ESA 2012/18 (ISIN: DE000A1R0RZ5) is technically classified as a temporary default, which does not reflect the financial situation of the company. Creditreform Rating has stated that the company rating will be reassessed once the bond extensions have been implemented by change of the terms and conditions of the bonds.