Moody's downgrades Renova

Moody's Investors Service aid it downgraded the corporate family rating of Renova Holding Ltd.'s to B1 from Ba3 and assigned the A2.ru national scale rating. The probability-of-default rating is unchanged at B2.

The outlook is negative.

The action is driven by Moody's assessment of the company's liquidity position and refinancing needs while taking into account the action plan developed by the company to manage its liquidity position and debt service obligations as well as the specific steps that, if concluded on a timely basis, would address the company's 2009 refinancing requirements, according to the agency.

The action further considers the impact of the substantial decline in the equity markets and estimated comparable reduction in the valuations of Renova's sizable unlisted assets, the agency said.

The B1 corporate family rating is supported by expectation of relatively high family recovery rates in the event of a default underpinned by the current market valuations of the core listed assets, the agency noted.

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