Fitch Ratings has downgraded Ukraine-based DTEK Energy B.V.'s (DTEK) Long-term foreign and local currency Issuer Default Ratings (IDR) to 'C' from 'CCC', according to a press release of Fitch published late on Monday.

According to the press release, the Long-term IDRs downgrades to 'C' indicate that default is imminent, due to the company's very weak liquidity profile.

"The company's cash position of $341 million as of end-2014 was well below its short-term maturities of $598 million due in 2015 and $641 million due in 2016 (excluding revolving lines and letters of credit in the amount of $416 million)," reads the report.

DTEK was established in 2005 to manage the energy assets of SCM (Donetsk), which belongs to Rinat Akhmetov.

In 2010, DTEK issued five-year eurobonds worth $500 million. The coupon was set at 9.5% per annum.

In March 2013, the company refinanced 60% of the securities thanks to the issue of new five-year bonds worth $600 million with the coupon of 7.875% per annum.

Deutsche Bank AG and J.P. Morgan Securities were the dealer managers of the latter deal.

In late January 2015, DTEK Finance B.V. (the Netherlands), subsidiary of DTEK holding, started drawing up a register of the eurobond holders. The company said that the information on the eurobond holders is collected as a part of the current strategic revision of the company's capital structure.

On March 13, the company hold a phone conference with investors and said that the company plans to address holders of its eurobonds worth $200 million due on April 28, 2015 with a proposal of restructuring the securities.