Evraz Group SA bonds reduced the rating

As reported, Evraz Group SA plans to place seven -year bonds (Eurobonds) in the European stock market totaling $ 1 billion at 6.5 percent per annum.

Today, the Fitch rating agency appropriated the Euras Eurobonds Pre-Rating at the BB- (EXP) level. The agency argued its decision by the fact that the latest financial reports of the group show a decrease in revenue and marginal profit.

Meanwhile, margin indicators, the ability to generate cash flows and creditworthiness were at a higher level than Fitch experts were predicted. "The expected gradual decrease in the leftist since 2014, mainly due to the generation of free cash flow, determines the" stable "forecast for the rating of the default of the issuer (RDE) of the company," the agency notes.

The final rating of Euraz bonds will be assigned later, after all the documentation is protected regarding the release of the Eurobonds, the data of which, as expected in Fitch, will significantly comply with the previously received information.