Elektrim receives poor marks from rating agencies

International rating agency Moody's Investor Services has announced that, according to its criteria, energy and telecom concern Elektrim is not capable of covering its debt of euro 480 million. Elektrim's debt has risen due to the company's failure to finance the buyback of convertible bonds by December 17, as was requested by the bondholders. Moody's also rated Elektrim's future prospects as negative. Rating agency Standard & Poor's severely decreased its long-term valuation of the company, giving the company a D rating, down from CCC. Elektrim's financial assets have fallen by euro 22.3 million since the company's December 13 announcement that it has euro 276 million in funds. The poor financial situation of the company does not seem to have scared off private investors on the Warsaw Stock Exchange. Elektrim's share price rose by almost 17% yesterday, to over zl. 9 per share. (Rzeczpospolita, p. B1; Gazeta Wyborcza, p. 26) A.K.