International rating agencies have been assigning credit ratings to Metalloinvest from July 2010.
The positive changes in the ratings assigned to the Company during the last four years show that the investment community has appreciated Metalloinvest’s efforts to enhance the efficiency of its enterprises.
|Long-term corporate rating||BB||BB||Ba2|
|Date||May 2014||February 2015||April 2015|
Between February and May 2014 Standard & Poor's and Fitch upgraded the following of the Company's long-term corporate credit ratings:
- Standard & Poor's raised the long-term rating of Metalloinvest from BB- to BB with a Stable outlook. As reported by S&P, Metalloinvest showed its readiness to implement a more predictable financial policy, and improved its debt repayment schedule. Besides, Standard & Poor's raised the rating of public debt instruments of Metalloinvest (Eurobonds) from BB- to BB;
- Fitch raised the credit rating of Metalloinvest from BB- to BB with a Stable outlook. The upgrade reflects Metalloinvest's strong operating portfolio and the Company's progress in the field of corporate governance improvement. Fitch also raised its senior unsecured foreign currency rating from BB- to BB (Eurobonds rating).
In February 2015, Standard & Poor's confirmed the Company's long-term ratings in foreign and national currencies at BB. The confirmation of the BB levels reflects the opinion of Standard & Poor's as to the positive influence of the weaker ruble and the Company's efficient line of products on the financial indicators of Metalloinvest. The outlook has been revised from Stable to Negative due to the growing uncertainty as a result of reduction of prices for iron ore, growing country risk of Russia, and limited access of Russian corporations to capital markets.
In April 2015, Moody's confirmed the Company's corporate level at Ba2 with a Stable outlook. At the same time, Moody's confirmed the ratings of debt securities issued by Metalloinvest Finance Limited at Ba2 with a Stable outlook. The confirmation of Ba2 ratings reflects the opinion of Moody's that the competitive position of Metalloinvest on the cost value remains strong in the light of ruble devaluation in 2014. These improvements combined with the adequate liquidity level and continued reduction of the debt load in 2014 and in the beginning of 2015 allowed the Company to stay in the category of Ba2 ratings, and will set off to a certain extent the negative effect from the weakening of iron ore prices.