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(Alliance News) - Moody's Investors Service on Wednesday has upgraded the senior unsecured rating on Russian steel maker and miner Evraz PLC to Ba1 from Ba2.
In addition, Moody's has withdrawn the company's Ba1 corporate family rating and Ba1-PD probability of default rating.
The outlook remained stable, the ratings agency said. It reflects Moody's expectation that Evraz will adhere to balanced financial policies, maintain moderate leverage, continue to generate positive post-dividend free cash flow and exhibit healthy liquidity, while Moody's does not expect any near-term changes in the capital structure of Evraz, with debt at its operating companies likely to continue making up substantial share of overall liabilities.
Evraz produces steel, iron, vanadium and coal from its operations in Russia, North America, and Eastern Europe.
"The upgrade reflects the stronger credit profile of the Evraz group overall," said Denis Perevezentsev, a vice president-senior credit officer at Moody's.
"The upgrade also reflects our expectation that the company will maintain strong credit metrics and conservative financial policy post coal assets demerger under various steel, coal and iron ore price scenarios," added Perevezentsev.
Going forward, Moody's said it could upgrade Evraz's senior unsecured rating if the FTSE 100 company's credit profile strengthens. In contrast, Moody's said it could downgrade the rating if Evraz's credit quality deteriorates.
Evraz shares were trading 0.1% higher in London on Friday at 598.00 pence each.
By Evelina Grecenko; evelinagrecenko@alliancenews.com
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