Moody’s changes Raspadskaya view to negative

Moody's Investors Service said it changed the outlook on Raspadskaya OAO's B2 corporate family rating and B2-PD probability of default rating to negative from stable.

Concurrently, the agency affirmed these ratings, along with the B2 rating on the senior unsecured debt issued by Raspadskaya Securities Ltd., a limited liability company incorporated in Ireland, as well as its B2-PD probability of default rating (LGD4, 50%).

Moody’s said the outlook change reflects its expectations that low domestic demand and subpar profitability of export deliveries will likely continue in the near term, which will continue to negatively affect the company's financial metrics over the next quarters.

Moreover, low coking coal prices and the lack of formal guarantees from EVRAZ plc (unrated) or Evraz Group SA (Ba3 stable) limit the level of alignment between the corporate family ratings of Raspadskaya and Evraz Group, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.