Fitch Ratings has upgraded the long-term issuer default ratings (IDR) and Eurobond ratings of Metinvest mining and metals group from B+ to BB-, keeping its outlooks stable.
“The upgrade has followed the upgrade of Ukraine's country ceiling from B- to B that took place on September 6. Metinvest's IDR is two notches above the country ceiling,” the agency reports.
Fitch attributed the upgrade to the comfortable servicing of the external foreign currency debt and Metinvest's relevant business and financial performance.
Moreover, S&P has also upgraded Metinvest's issuer credit rating and Eurobond rating from B- to B, outlook stable.
S&P indicates that Metinvest has shown a balanced financial policy with relatively low borrowings and positive free cash flows over the past eighteen months, maintaining the adequate cost allocation to ensure business growth and shareholder benefits.
Both agencies has also assigned preliminary ratings to Metinvest's proposed new Eurobonds to be issued after the redemption of existing bonds of up to $440m: Fitch – BB-(EXP), S&P – B.
“Proposed Eurobonds of at least $500m will smooth out the repayment profile and strengthen the liquidity”, S&P states.