S&P rates Ferrexpo

Standard & Poor's said it assigned a B foreign-currency and B+ local-currency long-term corporate credit ratings to Ferrexpo plc and a B short-term corporate credit rating.

The outlook is stable.

Ratings reflect the group's weak business risk profile and aggressive financial risk profile, the agency said.

Supporting factors include the mid-cost position of the group's mining operations, long reserve life, proximity to European steel markets and attractive industry characteristics including currently high iron ore prices, the agency noted.

Constraining factors include increased volatility in iron ore prices, industry cost pressures and capital intensity, according to S&P.

Adjusted debt-to-EBITDA ratio of 2.5x is in line with ratings, the agency said.

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