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IMH Capital D.A.C. -- Moody's downgrades the ratings of 95 Russian corporates

Rating Action: Moody's downgrades the ratings of 95 Russian corporatesGlobal Credit Research - 10 Mar 2022London, March 10, 2022 -- Moody's Investors Service (Moody's) has today downgraded the ratings of 95 Russian non-financial corporates, as well as the Baseline Credit Assessments in the case of Government-Related Issuers (GRIs). Today's rating actions follow the sovereign rating action on the Government of Russia which took place on 6 March 2022, where Moody's downgraded the Government of Russia's long-term issuer rating and senior unsecured ratings (local and foreign currency) to Ca from B3. The Other Short Term (local currency) rating remained unchanged at Not Prime (NP). Russia's local- and foreign-currency country ceilings were lowered to Caa2 from B2 and B3, respectively.The downgrade of Russia's ratings was triggered by Moody's expectation that capital controls by the Central Bank of Russia (CBR) will restrict cross border payments including for debt service on government bonds. Moody's view is supported by a reported statement from the National Settlement Depository (NSD) that coupon payments on OFZ government bonds due on Wednesday 2 March have only been paid to local holders of the papers, citing the CBR order prohibiting payments to non-residents. The downgrade to Ca was hence driven by severe concerns around Russia's willingness and ability to pay its debt obligations. Moody's view is that the risk of a default occurring has significantly increased and that the likely recovery for investors will be in line with the historical average, commensurate with a Ca rating. For additional information, please refer to the related announcement: https://www.moodys.com/research/--PR_463675.Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463897 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and identifies each affected issuer.While liquidity alone was not the main driver for these actions, the intensifying pressures on the domestic banking system and rising risk of international banks distancing themselves from Russian issuers may threaten the reliability of previously committed liquidity lines. We will continue to monitor issuer-specific liquidity and issuers' own responses to this changing environment, with liquidity risk a possible driver of future rating actions. In addition, we note that a Presidential Decree of 5 March requires that non-resident investors in foreign currency-denominated sovereign debt will be repaid in local currency. If such a condition were applied to corporate debt and be contrary to the terms of an indenture, this could be considered a default if it resulted in a diminished payment relative to the original promise.Across the portfolio we have generally repositioned the Credit Impact Scores at CIS-2 to reflect the now muted impact of Environmental, Social and Governance (ESG) risks to the extent that ratings are predominantly constrained by sovereign linkage and the country ceilings. For GRIs, our governance IPS scores may in future move closer to the sovereign's G-5 if uncertainty over government willingness to pay creditors is mirrored at the GRI level.RATINGS RATIONALEToday's rating actions on the affected corporates are a direct consequence of the sovereign rating action and reflect Moody's view that ratings of Russian companies are generally constrained by the foreign-currency country ceiling of Russia, which is Caa2.The negative outlooks, which are aligned with the sovereign outlook, reflect the severe risks to Russia's macro-economic stability posed by the imposition of severe and co-ordinated sanctions and the financial ramifications from central bank capital controls and delays to sovereign debt repayments.FACTORS THAT COULD LEAD TO AN UPGRADE OR DOWNGRADE OF THE RATINGSTo the extent that these ratings are constrained by Russia's new Caa2 foreign currency ceiling and by a degree of credit linkage to Russia itself, positive rating actions are unlikely until credit stresses on Russia are resolved resulting in a stabilisation of the outlook or an upgrade of the sovereign rating or a higher country ceiling. Negative actions could be driven by further stress on Russia or a lowering of the ceiling, and also by issuer-specific weaknesses such as business disruptions, liquidity stresses, currency mismatches or expectations of debt restructuring arrangements.PRINCIPAL METHODOLOGIES The principal methodology used in rating JSC Biocad was Pharmaceuticals published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1285013. The principal methodology used in rating EuroChem Group AG, EuroChem Finance DAC, Acron PJSC, PJSC PhosAgro, PhosAgro Bond Funding DAC, Sibur Holding, PJSC, Sibur Securities DAC, Uralkali PJSC and Uralkali Finance Designated Activity Company was Chemical Industry published in March 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1152388. The principal methodology used in rating Autobann (JSC SOYUZDORSTROY) and Avtoban-Finance, JSC was Construction published in September 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1285005. The principal methodology used in rating Gazprom Neft PJSC, GPN Capital S.A., Lukoil, PJSC, LUKOIL International Finance B.V. and LUKOIL Capital DAC was Integrated Oil and Gas Methodology published in September 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345. The principal methodologies used in rating Gazprom, PJSC, Gaz Capital S.A., Gaz Finance Plc, Tatneft PJSC, Bashneft PJSOC, Rosneft International Finance Limited and PJSC Oil Company Rosneft were Integrated Oil and Gas Methodology published in September 2019 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1172345, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodologies used in rating Svyazinvestneftekhim JSC were Investment Holding Companies and Conglomerates published in July 2018 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1125855, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating Nord Gold plc, Celtic Resources Holdings DAC, SUEK JSC, SUEK Finance, SUEK Securities DAC, UC RUSAL, IPJSC, Rusal Capital D.A.C., MMC Norilsk Nickel, PJSC, MMC Finance DAC, Metalloinvest Finance D.A.C., JSC Holding Company METALLOINVEST, PJSC Polyus and Polyus Finance Plc was Mining published in October 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752. The principal methodologies used in rating ALROSA PJSC and Alrosa Finance S.A. were Mining published in October 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1292752, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating LSR Group PJSC, PJSC PIK - Specialized Homebuilder, LLC PIK-Corporation and PIK Securities DAC was Homebuilding And Property Development Industry published in January 2018 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1108031. The principal methodology used in rating Borets International Ltd, Borets Finance DAC, Neftserviceholding LLC and Petro Welt Technologies AG was Oilfield Services published in August 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1277306. The principal methodology used in rating Federal Passenger Company JSC was Passenger Railways and Bus Companies published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1299262. The principal methodology used in rating DME Limited (Moscow Domodedovo Airport) and DME Airport DAC was Privately Managed Airports and Related Issuers published in September 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1092224. The principal methodology used in rating Global Ports Investments Plc and Global Ports (Finance) Plc was Privately Managed Ports Methodology published in May 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1129671. The principal methodology used in rating Cherkizovo Group, PJSC was Protein and Agriculture published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296919. The principal methodology used in rating IDGC of Urals, JSC, Rosseti Center and Volga Region, PJSC, Rosseti Volga, PJSC, Rosseti Lenenergo, PJSC and Rosseti Moscow Region, PJSC was Regulated Electric and Gas Networks published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225. The principal methodologies used in rating Transneft, PJSC, ROSSETI, PJSC, FGC UES, PJSC and Federal Grid Finance D.A.C. were Regulated Electric and Gas Networks published in March 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1059225, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating O1 Properties Limited, O1 Properties Finance JSC and O1 Properties Finance Plc was REITs and Other Commercial Real Estate Firms Methodology published in July 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1272320 . The principal methodology used in rating JSC ROLF and X5 Retail Group N.V. was Retail published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296095. The principal methodologies used in rating Sovcomflot PAO and SCF Capital Designated Activity Company were Shipping published in June 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1276306, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating PAO TMK, Chelpipe Finance DAC, TMK Capital S.A., PJSC KOKS, IMH Capital D.A.C., EVRAZ plc, Magnitogorsk Iron & Steel Works, MMK International Capital DAC, NLMK, Steel Funding D.A.C., PAO Severstal and Steel Capital S.A. was Steel published in November 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296098. The principal methodology used in rating Globaltrans Investment PLC and TransContainer PJSC was Surface Transportation and Logistics published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296092. The principal methodologies used in rating Russian Railways Joint Stock Company and RZD Capital PLC were Surface Transportation and Logistics published in December 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1296092, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating MegaFon PJSC, Veon Ltd., VEON Holdings B.V., VimpelCom PJSC, Mobile Telesystems Public Joint Stock Company and MTS International Funding Limited was Telecommunications Service Providers published in January 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1055812. The principal methodologies used in rating Atomenergoprom, JSC, Inter RAO, PJSC, RusHydro, PJSC and RusHydro Capital Markets DAC were Unregulated Utilities and Unregulated Power Companies published in May 2017 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1066389, and Government-Related Issuers Methodology published in February 2020 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1186207. The principal methodology used in rating PAO Novatek and Novatek Finance Limited was Independent Exploration and Production published in August 2021 and available at https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1284973. Alternatively, please see the Rating Methodologies page on www.moodys.com for a copy of these methodologies. REGULATORY DISCLOSURESThe List of Affected Credit Ratings announced here are a mix of solicited and unsolicited credit ratings. For additional information, please refer to Moody's Policy for Designating and Assigning Unsolicited Credit Ratings available on its website www.moodys.com. Additionally, the List of Affected Credit Ratings includes additional disclosures that vary with regard to some of the ratings. Please click on this link https://www.moodys.com/viewresearchdoc.aspx?docid=PBC_ARFTL463897 for the List of Affected Credit Ratings. This list is an integral part of this Press Release and provides, for each of the credit ratings covered, Moody's disclosures on the following items: ? EU Endorsement Status ? UK Endorsement Status ? Rating Solicitation ? Issuer Participation ? Participation: Access to Management? Participation: Access to Internal Documents? Releasing Office? Person Approving the Credit RatingFor further specification of Moody's key rating assumptions and sensitivity analysis, see the sections Methodology Assumptions and Sensitivity to Assumptions in the disclosure form. Moody's Rating Symbols and Definitions can be found at: https://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_79004.For ratings issued on a program, series, category/class of debt or security this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series, category/class of debt, security or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.The ratings have been disclosed to the rated entity or its designated agent(s) and issued with no amendment resulting from that disclosure.Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.Moody's general principles for assessing environmental, social and governance (ESG) risks in our credit analysis can be found at http://www.moodys.com/researchdocumentcontentpage.aspx?docid=PBC_1288235.The below contact information is provided for information purposes only. Please see the ratings tab of the issuer page at www.moodys.com, for each of the ratings covered, Moody's disclosures on the lead rating analyst and the Moody's legal entity that has issued the ratings.Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating. Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London, E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 Client Service: 44 20 7772 5454 /td> © 2022 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.CREDIT RATINGS ISSUED BY MOODY'S CREDIT RATINGS AFFILIATES ARE THEIR CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MATERIALS, PRODUCTS, SERVICES AND INFORMATION PUBLISHED BY MOODY’S (COLLECTIVELY, “PUBLICATIONS”) MAY INCLUDE SUCH CURRENT OPINIONS. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE APPLICABLE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S CREDIT RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS, NON-CREDIT ASSESSMENTS (“ASSESSMENTS”), AND OTHER OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. 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