Fitch downgrades Azerbaijan's Baghlan to 'RD': withdraw rating

Fitch Ratings has downgraded Azerbaijani building materials company Baghlan Group FZCO's (Baghlan) Long-term Issuer Default Rating (IDR) to 'Restricted Default (RD)' from 'B-', and withdrawn the rating, the agency said in a statement.

Fitch has also withdrawn the expected rating of 'B-(EXP)' on Baghlan's planned issue of guaranteed notes in December 2013, which failed to take place.

Accordingly, Fitch will no longer provide ratings or analytical coverage for Baghlan.

Baghlan's downgrade reflects the non-payment of debt obligations on its unrated USD150m 14.75% loan participation notes (LPN). The planned bond issue was intended to refinance the majority of its debt obligations.

The ratings have been withdrawn as Fitch no longer has sufficient information to maintain the ratings. The current liquidity position of the group and its ability to meet maturing debt obligations including with local banks cannot be assessed.

Fitch was recently notified that Baghlan failed to pay the USD19m interest payable on 27 December 2013 on its USD150m LPNs. The LPNs were in technical default on 1 January 2014 following a grace period. As of 7 March 2014 part payment of USD8m had been made.

ANN.Az