S&P rates Evraz loan BB-

Standard & Poor's said it affirmed the BB- long-term corporate credit and senior unsecured debt ratings on Evraz Group SA and its core subsidiary Mastercroft Ltd., following Evraz's plan to acquire a majority stake in Delong Holdings Ltd.

S&P assigned a BB- long-term debt rating to a $3.2 billion structured credit facility. Evraz is the borrower, guaranteed by Mastercroft.

The Russia national scale rating on Evraz and Mastercroft was affirmed at ruAA.

The outlook is positive.

Affirmation reflects S&P's view that the acquisition could strengthen Evraz's business risk profile by expanding its production and improving geographic diversification into foreign markets, according to the agency.

Ratings reflect the company's business activity as a largely Russia-based commodity steel producer, an acquisitive financial policy and significant capital expenditures and investments, S&P said.

Ratings are supported by a leading domestic market position in long products, vertical integration and low costs, improving diversification and strong cash flow generation, the agency said.

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