Moody's downgrades Mechel

Moody's Interfax Rating Agency said it downgraded Mechel OAO's national scale rating to Ba3.ru from Baa3.ru. The outlook on the rating is negative.

Moody's Interfax's downgrade follows Moody's Investors Service's downgrade of the company's corporate family rating to Caa1 with a negative outlook on March 31.

"The downgrade is driven by the recent deterioration of spot coking coal prices, significant leverage and Mechel's current weak liquidity with sizable maturities over the next 12 to 24 months, as well as the currently bleak prospects for meaningful near-term coking coal price recovery," Denis Perevezentsev, Moody's vice president and lead analyst for Mechel, said in a news release.

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