Fitch rates Evraz notes BB-

Fitch Ratings said it assigned a final senior unsecured rating of BB- to Evraz Group SA's $500 million 6¾% notes due in 2022 and placed the rating on Rating Watch negative.

The rating is in line with Evraz's long-term issuer default rating of BB-, which also is on negative watch.

The bonds rank pari passu with existing senior unsecured debt and include limitations on additional indebtedness, subject to a consolidated debt-to-EBITDA ratio of less than 3.5x, Fitch said.

Simultaneously with the bond issue, Evraz said it tendered $344 million of its 2017/2018 existing bonds, as well as Raspadskaya's 2017 bonds, the agency said, and used the remaining proceeds and cash to call a make-whole on their outstanding 2017 bonds.

The ratings were placed on negative watch following the release of its 2015 annual results, which fell below base-case expectations, Fitch said.

The results were due to generally weak demand trends for steel in the Russian market and construction steel, the agency 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.