Fitch rates Metinvest notes BB-

Fitch Ratings said it assigned Metinvest BV’s upcoming notes issue an expected BB- senior unsecured rating.

“The proposed bond is expected to extend and smooth out the company’s maturity profile, which will support financial flexibility over the medium term. For Metinvest to maintain its Long-Term Issuer Default Rating (IDR) at two notches above the B country ceiling of Ukraine, hard-currency (HC) debt service cover needs to remain sustainably above 1.5x on an 18-months rolling basis. Refinancing its 2021 bond and a portion of its 2023 bond early will create headroom relative to the minimum requirement for hard-currency debt service cover,” Fitch said in a press release.

Fitch said it anticipates the new issue to be broadly neutral to gross debt as the proceeds will be mainly used to repay outstanding debt.

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