Fitch upgrades Ferrexpo

Fitch Ratings said it upgraded Ferrexpo plc’s long-term issuer default rating to BB- from B+. The outlook is stable.

The upgrade follows Ukraine’s country ceiling upgrade to B from B- on Sept. 6. “The IDR of Ferrexpo remains two notches above the country ceiling, reflecting good operational performance together with limited debt on its balance sheet with a smooth maturity profile. The upgrade considers incremental debt amortization over the next four years and flexibility for the business to reduce capex and/or dividends under less supportive market conditions, as evidenced in 2015-2017, said Fitch.

Fitch considers Ferrexpo’s business and financial profile in the BB category. “However, the company’s credit quality is constrained by the operating environment in Ukraine and weak scores for governance structure, group structure and financial transparency,” the agency said in a press release.

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