Fitch: Evraz unaffected

Fitch Ratings said it has affirmed Evraz Group SA's issuer default and senior unsecured ratings of BB- and its short-term B rating following its purchase of a 24.9% stake in Highveld Steel and Vanadium Corp. Ltd. from Anglo American plc for an estimated $214 million.

At the same time, the agency affirmed Mastercroft Ltd.'s - the main operating holding company within Evraz - ratings at issuer default BB- and short-term B and Evraz Securities SA's senior unsecured BB- rating.

The outlooks are stable.

Subject to regulatory approval, Evraz has an option to increase its ownership in Highveld to 79% for an estimated $678 million by purchasing the remaining 29.2% of Highveld owned by Anglo American, as well as Credit Suisse's 24.9% stake. Evraz had a net cash position of $641 million as at fiscal-year 2005, which is sufficient to finance its initial 24.9% shareholding purchase and materially fund the increase in its shareholding to the 79% level under the option agreement.

In Fitch's view, the acquisition will not materially change Evraz's operating or financial profile and is therefore seen as credit neutral.

© 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.