Moody’s says worsens outlook on Russia’s SUEK rating to Negative

MOSCOW, Apr 21 (PRIME) -- International rating agency Moody’s Investors Service has affirmed the corporate family rating of Russia’s Siberian Coal Energy Company (SUEK) at Ba2 and changed the outlook on it to negative from stable, the agency said on Tuesday.

“The rating action incorporates Moody’s view that difficult industry conditions will persist, continuing to pressure SUEK’s financial performance in 2020. The rapid and widening spread of the coronavirus outbreak, deteriorating global economic outlook, falling oil prices, and asset price declines are creating a severe and extensive credit shock across many sectors, regions and markets,” the agency said.  

“The negative outlook reflects low steam coal prices and the uncertainty with respect to the near-term recovery of the seaborne market, which may delay the company’s deleveraging over the next 12–18 months.”

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