Fitch cuts Industrial Union of Donbass

Fitch Ratings said it downgraded Corp. Industrial Union of Donbass's (IUD) long-term issuer default rating to B from B+ while maintaining a negative outlook. Fitch also said it affirmed the company's short-term issuer default rating at B.

The downgrade reflects the agency's forecast that the company's revenue and EBITDAR will decrease by 50%, due to a decrease in production volume and prices caused by the current global economic downturn and potential volatility in demand and pricing of metal products.

positive rating factors include its production of high value-added products at its facilities in Eastern Europe, its low-cost production base and its flexibility to cut back significant capital expenditure investments and reduce its workforce to preserve generated cash, the agency said.

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