Fitch upgrades Metinvest

Fitch Ratings said it upgraded the long-term local-currency and foreign-currency issuer default ratings of Metinvest BV, parent of the Ukrainian vertically integrated steel and mining group, to B from RD (restricted default).

The senior secured rating also was upgraded to B with recovery rating of RR4 from RD with recovery rating of RR6.

The outlook is stable.

The upgrades reflect the company's enhanced financial flexibility resulting from the successful restructuring of the company's debt, the abatement of the conflict in the Donbas region and the resilient operations throughout the crisis in Ukraine, Fitch said.

The rating was previously set at RD due to an uncured payment default under the company's PXF facility that caused a series of cross defaults to the company's various debt instruments, the agency explained.

While a scheme of arrangement had been quickly reached between the company and its creditors, risks remained that the completion of a comprehensive restructuring would be considerably delayed, Fitch said.

Those risks are now mitigated, the agency said.

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