www.unuudur.com » Moody’s: Mongolian Mining’s missed payment on bank facilities has no rating impact

Moody’s: Mongolian Mining’s missed payment on bank facilities has no rating impact

[Нийтэлсэн: 12:48 25.03.2016 ]

www.moodys.com

Moody’s Investors Service says that Mongolian Mining Corporation’s (MMC, Ca negative) missed payment on the principal instalment and interest of its bank facilities has no immediate impact on its Ca corporate family and senior unsecured rating.

The rating outlook remains negative.

On 23 March 2016, MMC announced that it had not made certain repayments on the principal instalments and interest on its bank facilities with BNP Paribas (A1 stable) and Industrial and Commercial Bank of China Limited (A1 negative).

It had also not been able to secure any waiver or forbearance from the two banks.

The announcement also stated that this situation constitutes an event of default under the bank facilities agreement and a cross-default event under the indentures of its US$600 million senior notes.

At the same time, as of the date of announcement, MMC had not received any notice from the lenders demanding immediate repayment of the outstanding facilities, or any notice from its bondholders and other creditors.

“MMC’s Ca ratings already incorporated the high likelihood of default and the low expected recovery rate for bond holders,” says Dylan Yeo, a Moody’s Analyst.

MMC has been in negotiations with its bondholders and other lenders since January 2016 to restructure its debt, and has proposed entering into forbearance agreements with its lenders.

Moody’s will monitor the progress of the debt restructuring plans and re-assess MMC’s credit profile when the plans are finalized.

The negative outlook reflects the continued uncertainty over the outcome of the debt restructuring process.

The last rating action with respect to MMC was taken on 1 September 2015, when Moody’s downgraded the corporate family rating and senior unsecured ratings to Ca from Caa2.

The principal methodology used in these ratings was Global Mining Industry published in August 2014. Please see the Ratings Methodologies page on www.moodys.com for a copy of this methodology.

Mongolian Mining Corporation (MMC) is the largest privately owned coal mining company in Mongolia. Established in 2005, it listed on the Hong Kong Stock Exchange in October 2010. It has two coal mines located in the Gobi Desert, the Ukhaa Khudag mine and the Baruu Naran mine, which was acquired in 2011.

This publication does not announce a credit rating action. For any credit ratings referenced in this publication, please see the ratings tab on the issuer/entity page on www.moodys.com for the most updated credit rating action information and rating history.

 

Dylan Yeo

Analyst

Corporate Finance Group

Moody’s Investors Service Hong Kong Ltd.

24/F One Pacific Place

88 Queensway

Hong Kong

China (Hong Kong S.A.R.)

JOURNALISTS: (852) 3758 -1350

SUBSCRIBERS: (852) 3551-3077

Gary Lau

MD – Corporate Finance

Corporate Finance Group

JOURNALISTS: (852) 3758 -1350

SUBSCRIBERS: (852) 3551-3077

Releasing Office:

Moody’s Investors Service Hong Kong Ltd.

24/F One Pacific Place

88 Queensway

Hong Kong

China (Hong Kong S.A.R.)

JOURNALISTS: (852) 3758 -1350

SUBSCRIBERS: (852) 3551-3077



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