MOSCOW, May 5. /TASS/. Fitch Ratings downgraded Long-term foreign currency Issuer Default Rating (IDR) of Russia-based Far-Eastern Shipping Company (Fesco) to 'C' from 'CC', the rating agency reported Thursday.
The downgrade followed the company's announcement that it will not pay the eurobond coupon payments due on 4 May 2016 in respect to its two eurobonds maturing in 2018 (8%) and 2020 (8.75%).
The downgrade also reflects Fesco's weak liquidity, the continued deterioration of operational performance, weaker cash generation, and exposure to a contracting economy and ruble exchange rate volatility, the agency said.
"We expect the company's financial performance to have deteriorated in 2015 and believe that an improvement in 2016 is uncertain," the report said.