Fitch rates Interpipe B+

Fitch Ratings said it assigned Interpipe Ltd. a long-term issuer default B+ rating and a short-term issuer default B rating.

The outlook is stable for the long-term issuer default rating.

"The ratings reflect Interpipe's leading position in the Ukrainian steel pipes and wheels market, diversified revenues portfolio as well as strong financial profile," Angelina Valavina, director of Fitch's industrials team, said in a written statement.

The company is Ukraine's largest steel pipes and wheels producer and among the 10 largest in the world, according to Fitch. Interpipe has low debt, high profits and a diversified portfolio. Its leverage is 0.5 times versus the international industry average of 1.5 times, Fitch said.

The ratings consider the potential for the issuer's credit metrics to slip because of a new financial strategy that proposes to raise shareholder return by increasing debt to 50% of total capital.

© 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.