Fitch affirms Evraz

Fitch Ratings said it affirmed Evraz Group SA's long-term issuer default rating and senior unsecured ratings at BB and short-term issuer default rating at B. Fitch also said it affirmed Mastercroft Ltd.'s (Evraz's core subsidiary) long-term issuer default rating at BB and short-term issuer default rating at B. Evraz Securities SA's senior unsecured rating is affirmed at BB.

The outlook is stable.

The affirmation follows news that the company has agreed to purchase up to 51% of Delong Holdings Ltd. Fitch said it expects Evraz's gross leverage to stay within the company's internal financial target of 1.5x this year.

The agency noted the accelerating pace of acquisitions by Evraz. The planned Delong deal is just three months after its acquisition of Claymont Steel, Fitch said. These acquisitions have reduced its short-term financial flexibility and its rating headroom within the BB rating level, the agency said.

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