Moody's cuts Metinvest, Azovstal

Moody's Investors Service said it downgraded Metinvest BV's Ba3 corporate family rating to B1 and Aa1.ru national scale rating to Aa3.ua and Azovstal Capital BV's senior unsecured rating of the loan participation notes to B2 given recent collapse in demand for semi-finished steel products.

The outlook remains negative.

The action was prompted by a further weakening in the demand for steel products in the Ukraine, drop in steel prices and cash flow generation for the remainder of 2008 and into 2009, according to the agency.

The outlook reflects weaknesses in the industry, low visibility for prospects of short-term recovery and limitations for Ukrainian companies to receive funding from their banks, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.