Fitch puts Evraz on watch

Fitch Ratings said it placed Evraz Group SA's long-term BB issuer default and senior unsecured ratings as well as subsidiary Mastercroft Ltd.'s BB long-term issuer default rating on Rating Watch negative.

The watch reflects concern that the company's leverage for the financial years 2009 through 2011 may not remain commensurate with present ratings, according to the agency.

Fitch said it believes Evraz's profitability could come under pressure following the significant decrease in global demand and prices for steel products. The agency said it observed a persistently negative demand and price environment during the first quarter and now expects this to continue for the rest of the year.

As of fiscal year-end 2008 Evraz had a gross debt-to-EBITDA ratio of 1.57x and a net debt-to-EBITDA ratio of 1.42x.

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