Moody's Confirms B2..well will well24 Feb 2018 17:00
Interpretation please!! Ok speculate
Moody's Confirms B2 Rating Of Petra Diamonds But Outlook Now NegativeLONDON (Alliance News) - Moody's Investors Service confirmed late Friday the miner Petra ...
Alliance News24 February, 2018 | 2:50PM
LONDON (Alliance News) - Moody's Investors Service confirmed late Friday the miner Petra Diamonds Ltd's corporate family debt rating at B2 and its probability of default rating at B2-PD.
However, Moody's changed the outlook on the ratings to negative from review for downgrade.
"Our decision to confirm Petra's ratings reflects a drop in near-term liquidity risk the company faces after it successfully agreed a waiver and reset of 2017-18 bank covenant tests that it was uncertain to pass," said Douglas Rowlings, a Moody's vice president and senior analyst. "However, the negative outlook factors in the likelihood that it may again need to seek additional waivers or resets for upcoming tests in 2019."
Moody's confirmed the B3 rating assigned to Petra's USD650 million senior secured notes due May 1, 2022.
On Monday, Petra had reported that both earnings and revenue fell slightly in its first half of its financial year, despite a rise in production, in a period which saw the miner hit by industrial action and the inability to sell the Williamson diamond parcel.
Adjusted earnings before interest, tax, depreciation, and amortisation for the six months to December fell to USD80.1 million from USD87.1 million, with revenue falling to USD225.2 million from USD228.5 million in the same period a year earlier.
Petra shares closed down 2.6% in London on Friday at 60.90 pence.
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2018 Alliance News Limited. All Rights Reserved.
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