S&P Global Ratings downgrades Eurotorg’s credit rating

Eurotorg LLC (“Eurotorg” or the “Company”), the largest grocery retailer in Belarus, announces that on 27 September 2022 international credit rating agency S&P Global Ratings (S&P) has lowered the Company’s rating to ‘SD‘ (selective default) from ‘СС’ with Negative Outlook.

The agency noted that the rating action became a response to the tender offer launched by Eurotorg on 28 July 2022 to repurchase the Eurobonds. S&P viewed this transaction as a distressed exchange and tantamount to a default because investors received less than the principal amount.

Also, S&P pointed out that considering the possibility of imposing additional sanctions on Belarus, its business entities, and selected individuals, Eurotorg's ability to service its foreign currency liabilities may be diminished.

The full S&P announcement can be found here.