S&P upgrades NLMK

S&P said it raised the long-term corporate credit rating on the NLMK to BBB- from BB+, along with the Russia national scale rating to ruAAA from ruAA+ and the ratings on its senior unsecured notes to BBB- from BB+.

The outlook is negative.

The upgrades reflect a view that NLMK's industry-leading operating efficiency, low debt and conservative financial policy should enable the company to maintain its currently robust credit metrics with debt-to-EBITDA of less than 1.5x, even in the context of the industry downturn and weakening Russian steel demand, S&P said.

Being an efficient vertically integrated group with a solid market position, NLMK has become one of the most cost-effective global steel producers, occupying a left-side position in the first quartile of the global cost curve, the agency said.

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