S&P upgrades Metalloinvest

S&P said it raised the long-term ratings on Holding Co. Metalloinvest to BB+ from BB, including the ratings on bonds issued through Metalloinvest Finance DAC.

The stable outlook reflects a view that the company will remain resilient based on solid market positions, low production costs and reduced debt, S&P said.

The agency said it believes Metalloinvest can maintain credit metrics in line with the BB+ rating over at least the next two years with a debt-to-EBITDA ratio at about 1.5x, accompanied by solidly positive free operating cash flow.

The ratings are underpinned by the company's significant debt reduction, S&P said.

Metalloinvest achieved this by reducing capital expenditure and dividends and using the proceeds from the sale of its stake in Nornickel to repay debt, the agency said.

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