S&P upgrades Evraz

S&P said it raised the ratings on Evraz Group SA's senior unsecured debt to BB+ from BB, along with the ratings on its core financial subsidiary, EvrazHolding Finance LLC to BB+ from BB.

The agency also said it assigned a BB+ long-term issuer credit rating to Evraz plc, the holding company that owns 100% of Evraz Group SA.

Evraz Group reduced leverage and demonstrated record-high financial results in 2018 on the back of eased cash flow generation, thanks to a favorable pricing environment in the steel and coal segments, S&P said.

The company also benefits from supportive steel demand in Russia and the group's low-cost position, the agency said.

S&P also said it believes Evraz will sustain improved credit metrics over the next two years thanks to reduced gross debt, strong competitive positions in its key segments and flexible dividend policy.

The stable outlook reflects the group's resilience to industry volatility, supportive market conditions and its positive free operating cash flow, the agency said.

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