S&P cuts Borets

S&P said it lowered Borets International Ltd.’s issuer and issue ratings to CCC- from BB- and placed them on CreditWatch with negative implications.

The agency said it expects tighter liquidity and refinancing risks for Borets’ April 7, maturity of its $156 million in senior unsecured guaranteed notes following–among other steps taken by the Russian authorities–capital-control measures that could constrain nonresident bondholders from getting interest and principal payments on time.

Though Borets is based in Dubai, a substantial portion of its cash-generating assets are in Russia.

“We expect to resolve the CreditWatch over the next few weeks when we have visibility on how Borets could repay its upcoming maturity given the capital-control measures. We could lower the rating to CC or lower should the company be unable to draw down on its signed facility and a default or restructuring scenario seems imminent,” S&P said in a press release.

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