Fitch downgrades DTEK Energy

Fitch Ratings said it downgraded DTEK Energy BV's long-term foreign- and local-currency issuer default ratings to Restricted Default from C following the execution of the “well below par” tender offer to the holders of its 7%/7.5% senior payment-in-kind (PIK) toggle notes due 2027.

“We view the tender offer as a distressed debt exchange (DDE). Fitch has simultaneously upgraded the IDR to CC from RD, reflecting DTEK Energy's post-restructuring profile with high default risk,” the agency said in a press release.

Fitch concurrently boosted DTEK Energy’s senior unsecured rating to CC from C, based on better recovery prospects and an increase of the recovery rating to RR4 from RR5.

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