Fitch rates EvrazSecurities notes B

Fitch Ratings said it assigned EvrazSecurities SA Luxembourg's $150 million 10.875% five-year senior notes with a B rating with a stable outlook.

The notes are unconditionally and irrevocably guaranteed by Cyprus-based Mastercroft Ltd. and its subsidiaries OJSC Novokuznetsk Iron and Steel Plant in Russia and Gibraltar-based Ferrotrade Ltd. Mastercroft's other subsidiaries, OJSC Nizhny Tagil Iron and Steel Plant and OJSC Western Siberian Iron and Steel Plant will each have a limited guarantee of the issue's principal amount.

Under the bond documentation the proceeds can be used for financing acquisitions of mining assets and repayment of all amounts due under the existing loan facility provided for acquisition of such assets as well as for general corporate purposes.

Fitch said the rating reflects Mastercroft's leading domestic market positions in long steel products and a monopoly position in railway transport steel products; its main customers are in the railway, construction and pipe-producing industries. The rating also reflects Fitch's concern about related-party transactions, which are not unusual for holding companies. Nevertheless, they can potentially undermine Mastercroft's financial profile due to their frequency and size.

© 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.