Moody’s changes TMK view to positive

Moody’s Investors Service said it affirmed the B1 corporate family rating, B1-PD probability of default rating of PAO TMK and changed the outlook to positive from stable. Concurrently Moody’s affirmed the B1 senior unsecured rating of the notes issued by TMK Capital SA, a wholly owned subsidiary of TMK

“Our decision to change the outlook on TMK’s ratings to positive mainly reflects the fact that the company has closed the sale of 100% of shares in its U.S.-based subsidiary Ipsco Tubulars Inc. to Tenaris in January 2020 as well as our expectation that TMK will use nearly all of cash proceeds from this deal of around $1.1 billion for debt repayment, which will lead to substantial deleveraging,” said Denis Perevezentsev, a Moody’s vice president and senior credit officer, in a press release.

Moody’s said it expects the company will be able to reduce its leverage towards 3x and will continue to demonstrate a strong operating performance, while maintaining healthy liquidity over the next 12-18 months.

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