28 Apr 2010 13:35

Moody's assigns B2 to DTEK Finance B.V.'s notes due 2015; negative outlook

PRAGUE. April 28 (Interfax) - On Tuesday, Moody's Investors Service assigned a definitive B2 rating to the 9.50% USD500 million Senior Guaranteed Notes due 2015 issued by DTEK Finance B.V. ("DTEK Finance"). The outlook is negative, the agency said in a statement.

The statement said: "The assigned B2 rating and Loss Given Default (LGD) assessment of LGD4 reflect the senior unsecured ranking of the Notes, which rank junior only to certain secured debt. The Notes are guaranteed by DTEK Holdings B.V. (the parent company), DTEK Holdings Ltd and certain of Ukrainian operating subsidiaries of the DTEK group, which represent the majority of the group's assets and EBITDA. The rating is based on Moody's expectation that at least USD130 million of the proceeds will be used to repay existing secured bank debt and that the company would ensure reasonable headroom under its covenants both under its Notes indenture and bank agreements.

"The proposed Notes are subject to various restrictions and financial covenants, including limitations on incurrence of indebtedness, limitations on creation and incurrence of certain liens, limitation on certain mergers, asset sales and certain payments. The previous rating action on the DTEK group was implemented on 15 April 2010, when Moody's assigned a B2 Corporate Family Rating (CFR) and a B2 Probability of Default Rating (PDR) rating to DTEK Holdings B.V. and a provisional (P)B2 rating to the proposed USD-denominated Notes."