Fitch boosts Metalloinvest

Fitch Ratings said it upgraded Metalloinvest's long-term issuer default rating and senior unsecured rating to BBB- from BB+.

“The upgrade reflects Metalloinvest's strong financial profile underpinned by its commitment to a more conservative financial policy and its continuing strong operational profile, including low cost iron ore, pellets, hot briquetted iron (HBI) and long steel production,” Fitch said in a press release.

The agency said it expects strong cash flow generation in a supportive market environment will enable Metalloinvest to allocate around $600 million to repaying debt in 2021 to reach its gross debt target of $3 billion earlier than expected.

“Metalloinvest is keen to implement more conservative net debt/EBITDA targets than the existing 2x-2.5x,” Fitch said.

The outlook is stable.

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