April 11, 2018 / 11:11 AM / 8 months ago

Moody's withdraws Rusal rating after U.S. sanctions

LONDON, April 11 (Reuters) - Moody's withdrew its rating on Rusal on Wednesday as fallout from U.S. sanctions on the Russian aluminium producer continued to push it into crisis.

Moody's had held a 'positive' outlook on Rusal's non-investment grade Ba3 rating.

It said in a statement it withdrew the rating for "business reasons".

Rusal, which is at the heart of sanctioned businessman Oleg Deripaska's global aluminium empire, has already warned the measures imposed by U.S. authorities could trigger technical defaults on some of its debts.

Its Hong Kong-listed shares have lost almost 60 percent of their value in recent days while its bonds have slumped to record lows.

Almost all of Rusal's $7.6 billion debt is dollar-denominated, making it difficult for the company to make repayments since the sanctions effectively cut off its access to the U.S. banking system and correspondent banks and creditors.

A Moody's spokeswoman said the firm would not comment on whether it was reassessing any of its other Russian ratings.

Moody's currently has a positive outlook on its Ba1 Russian sovereign debt rating. (Reporting by Marc Jones; editing by Jason Neely)

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