Fitch and S&P Upgrade Metinvest's Ratings

The international rating agency Fitch Ratings has raised the long-term issuer default ratings (IDRs) of the Metinvest mining and metallurgical group and the ratings of its Eurobonds to BB- from B +, with a stable outlook.

"The increase follows an increase in Ukraine's country ceiling to 'B' from 'B-' on September 6. Metinvest's IDR remains two notches above the country ceiling," the agency said in a statement.

Fitch points out that this is due to the comfortable coverage of external hard currency debt servicing, as well as the corresponding business and financial performance of Metinvest.

In addition, the international rating agency S&P also upgraded the issuer's credit rating and Eurobonds ratings to "B" from "B-" to Metinvest, the outlook is stable.

S&P indicated that Metinvest has demonstrated a balanced financial policy over the past 18 months with relatively low leverage and positive free cash flow, while maintaining an adequate allocation of growth costs and shareholder returns.

Both agencies also assigned preliminary ratings to the proposed new Eurobonds of Metinvest, which the group intends to issue immediately after the buyback of up to $ 440 million of existing Eurobonds: Fitch - "BB- (EXP)", S&P - "B".

"The proposed Eurobonds worth at least $ 500 million will smooth the redemption profile and strengthen liquidity," S&P said.