S&P rates Evraz notes B+

Standard & Poor's said it assigned its B+ long-term corporate credit rating to Russian steel company Evraz Group SA and its core subsidiary Mastercroft Ltd.

The outlook on both companies is positive.

In addition, a AA-(ru) Russia national-scale rating was assigned to Evraz and Mastercroft.

S&P said it also assigned its B+ senior unsecured debt rating to the $175 million notes due 2006 and $300 million notes due 2009 issued by special-purpose vehicle Evraz Securities SA and guaranteed by Mastercroft.

The ratings on Evraz and Mastercroft reflect the companies' complex organizational and ownership structure with, historically, significant related party transactions and a short track record as a single group, the agency added.

This is offset by extensive upstream integration into iron ore and coking coal, which helps to control costs through the cycle, a strong market position in long steel in Russia and diversified end markets, S&P noted.

The ratings on Evraz and Mastercroft are currently equalized because both entities have almost the same asset base, liabilities and cash flows, S&P 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.