KYIV, April 1 – Fitch Ratings has downgraded Ukraine-based DTEK Energy B.V.'s (DTEK) Long-Term Foreign Currency Issuer Default Rating (IDR) to 'C' from 'B-', according to the agency's report on its website.

"Fitch has also downgraded DTEK's U.S. dollar eurobond's senior unsecured rating to 'C' with a Recovery Rating of 'RR5'. A full," it says.

"The downgrade indicates that default is imminent, following the announcement by DTEK that it will not pay the interest on its bank debt due on March 31, 2020. DTEK will also not pay eurobond coupon payments due on April 1, 2020 in respect to its 10.75% senior PIK toggle notes maturing in 2024. DTEK is in the process of developing a standstill agreement and debt-restructuring proposal. DTEK's liquidity is insufficient to service the company's obligations and we expect deterioration of operating cash flow in 2020, reflecting an oversupplied electricity market with low power prices," Fitch said.