[ET Net News Agency, 28 January 2016] Standard & Poor's Ratings Services today lowered
its corporate credit rating on Mongolian coal miner Mongolian Mining Corp. (MMC)(00975) to
'CCC-' from 'CCC'. At the same time, the credit rating agency lowered its issue rating on
the company's US$600 million senior unsecured notes to 'CCC-' from 'CCC'.
The downgrade follows MMC's announcement that it has hired advisors to provide advice on
the potential restructuring of the company's outstanding notes. S&P believes any
transaction or debt exchange would likely be substantially below par value, given that the
company's unsecured notes currently trade below 30 cents on the dollar.
"We believe a default is likely within the next six months barring an agreement with the
company's creditors on a restructuring," said S&P's credit analyst Xavier Jean.
"This is because MMC needs to repay more than US$150 million in debt amortization and
interests in 2016. The company's US$600 million notes also mature in 2017. This compares
with our estimate of cash balance below US$50 million as of Dec. 31, 2015." he added. (KL)