S&P trims Evraz view to negative, rates notes BB-

Standard & Poor’s said it revised its outlook on Evraz Group SA to negative from stable. The BB- long-term corporate credit rating was affirmed.

At the same time, S&P said it assigned a BB- issue rating to the proposed senior unsecured notes. The recovery rating of 4 indicates an expectation of recovery at the lower end of the 30%-50% range in the event of a payment default.

“We revised our outlook to negative from stable because margins in Evraz’s steel export markets have deteriorated significantly,” S&P said in a news release. “As a result, we have revised our forecast on Evraz for 2015-2016 downward. In particular, we forecast weakening of its leverage ratio (debt to EBITDA) to close to 4.0x in 2015-2016 from less than 3.0x in the first half of 2015.”

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