Fitch downgrades Industrial Union of Donbass

Fitch Ratings said it downgraded Industrial Union of Donbass' long-term issuer default rating to B- from B and affirmed its short-term issuer default rating at B.

The outlook is negative.

The downgrade reflects Fitch's view that the current global recession and the associated volatility in the demand and pricing of steel products have weakened the company's capacity for meeting its financial obligations and that, as a result, the company is likely to breach its financial covenants in 2009.

The agency said the negative outlook reflects its view that the Ukrainian metal and mining industry is expected to recover more slowly than the global metal and mining industry.

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