S&P cuts Sazka

Standard & Poor's said it lowered to D (default) from CC the long-term corporate credit rating on Sazka AS, along with the issue rating on the €215 million 9% secured amortizing bonds due 2021 to D from CC.

The downgrade follows the company's nonpayment of principal on its €215 million bonds maturing 2021, S&P said.

Sazka issued a notice to bondholders on Jan. 6, advising that it may only be able to make a full payment of the interest on the bonds, but not of the principal, the agency said.

Under the agency's methodology, missing a payment of interest or principal is tantamount to a default, S&P said.

The downgrade further reflects its failure to reach an agreement with its senior creditors to obtain a roll-over of short-term loans that matured in the last two weeks of December 2010, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.