(62,31 USD, 0,68%) Investors Service has today downgraded the corporate family rating (CFR) of N.V. (NWR, or the group) to Caa1 from B2 and its probability of default rating (PDR) to Caa1-PD from B2-PD, following a further reduction in coal prices for the third quarter of 2013 and expectations of prolonged softness in coal prices. At the same time, has downgraded the senior secured rating on the group's notes due 2018 to B3 (LGD3 -- 34%) from B1 and the senior unsecured rating on its notes due 2021 to Caa3 (LGD6 -- 90%) from Caa1. The outlook on the ratings is stable.
"Today's downgrade of NWR's ratings follows further worsening in the coal price environment, as signalled by the company's recently announced price reductions for Q3 2013, and our expectations that market conditions will remain challenging over the next 12 to 18 month with only marginal, if any, recovery in prices", says Paolo Leschiutta, a Vice President - Senior Credit Officer and lead analyst for (17,5 CZK, -6,91%).
In reaction to downgrade shares of fell in Prague by 6.9 % to 17,5 CZK, getting near its intraday historical minimum at 16,8 CZK from June 28. Historically lowest closing price for in Prague was 17,5 CZK.
Source: Moody´s, Bloomberg