Fitch: Petrol AD’s extension is distressed exchange
October 24, 2011 You can access the full text of this article on Euroweek website
Fitch says it considers the recently implemented three month maturity extension of Bulgarian company Petrol AD’s €87m bond a distressed debt exchange.
As a result, the agency is likely to downgrade Petrol AD’s long term issuer default rating (IDR) to RD (restricted default) from C on October 26, 2011, the original maturity date of the 8.37% bond.
The senior unsecured rating of the fuel distribution company’s notes is likely to be affirmed at C on this date.
Fitch expects Petrol AD’s IDR to stay at RD for 14 days and to be raised to the appropriate IDR to reflect the company’s future prospects after that.
Together with the proposal in September to extend the bond maturity, the company also invited bondholders to offer to sell up to €10m of bonds for cash to Petrol AD at 85% of their nominal value. Petrol AD purchased €11.8m of notes.
Issue — Petrol AD, 7.5% 26jan2022, EUR
Country of riskBulgaria
Redemption (put/call option)
М/S&P/F— / — / —
Company — Petrol AD
Full namePetrol AD
IndustryOil and gas