Moody’s Local Brazil has assigned a ‘BBB.br’ rating. Riga Telecommunications The team was under relegation review last Friday (7th). The risk rating agency included both Riga’s issuer rating and the rating of the fifth bond issue in its analysis.
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Moody’s said Riga’s rating is being considered for downgrade because of opaque information regarding the allocation of financial investments. “This could have an adverse impact on our credit opinion regarding our liquidity.”
“The size of the rating action will depend on the degree of visibility and detail of information regarding cash and financial investments that the authorities receive throughout the review period to assess Riga’s liquidity,” the statement said.
Moody’s Local Brazil’s review will focus on the company’s willingness to provide additional information regarding the assessment of its financial investments and liquidity position, in light of its short- and medium-term obligations and compliance with covenants. “Factors that could lead to an upgrade or downgrade. Rating upgrades are unlikely given the review of downgrades.”
After review, rating confirmation may occur if the authorities determine that the liquidity position is appropriate for the ‘BBB.br’ rating category.
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