DTEK Renewables was downgraded to C from CC by Fitch following the tender offer on its 8.5% green bonds due 2024 that the rating agency considers as a distressed debt exchange (DDE). Fitch notes that the tender offer will be executed well below par and is among measures that DTEK company is taking to reduce the probability of future defaults. DTEK is paying €14.98mn in cash to repurchase €35.47mn of its outstanding green bonds. The tender offer will also deplete its cash levels with liquidity only sufficient for the upcoming coupon payment in May 2023 of about €12mn. Besides, DTEK has not yet been granted an exception to a forex transfer moratorium, without which it cannot transfer cash available in Ukraine abroad, to pay its international bondholders.
DTEK’s EUR 8.5% 2024s were trading stable at 40.3.
