S&P: Klin Rayon Bond Repayment Delayed, But Expected Today

MOSCOW (Standard & Poor's) Nov. 14, 2008--Standard & Poor's Ratings Services said today that Klin Rayon (CC/Watch Neg/--), in the Moscow Oblast (B-/Watch Neg/--), had yesterday managed to pay on time the last coupon of its Russian ruble 300 million ($11 million) bond due Nov. 13, 2008. However, the rayon had not yet finalized its payments on the bond's principal. Nevertheless, we expect payment to the bond holders to be processed today. We base this opinion on information that the Moscow Oblast had this morning transferred the sum needed to repay the bond to the rayon, and that the rayon had then transferred it to the bond payment agent. Even so, without confirmation that all bond holders have been repaid by or on Monday Nov. 17, 2008, the ratings on the rayon will be lowered to 'SD/ruSD'.

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