S&P downgrades Evraz

Standard & Poor's said it lowered its long-term corporate credit, bank loan and senior unsecured debt ratings on Evraz Group SA and subsidiary LLC Sibmetinvest to B from B+, along with its Russia national scale rating to ruA- from ruA. All ratings were removed from CreditWatch, where they were placed with negative implications in September.

The outlook is stable.

The downgrade reflects a view that Evraz faces a period of weak operating results for the next couple of years due to the sharp downturn in the steel industry, S&P said.

Downward pressure on the ratings will likely occur if the group faces challenges in refinancing its short-term debt or if headroom under financial covenants becomes tight, the agency said.

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