S&P upgrades Evraz

Standard & Poor’s said it raised the long-term foreign- and local-currency corporate credit ratings on Evraz Group SA to BB- from B+.

The outlook is stable.

The agency also said it raised the Russia national scale rating on Evraz to ruAA-, along with the ratings on the notes previously issued by Evraz and EvrazHolding Finance LLC to BB- from B+. The recovery rating remains at 4, indicating 30% to 50% expected default recovery.

The upgrades follow Evraz’s reduced reported debt to $5.7 billion at year-end 2014 from $7.4 billion at year-end 2013, helped by strong discretionary cash flow of more than $1 billion in 2014, S&P said.

Evraz largely used this to de-leverage, the agency said.

Evraz has a fair business risk based on the combination of the moderately high risk and volatile and cyclical steel industry, S&P said.

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