The international rating agency Fitch Ratings has confirmed the long-term issuer default rating (IDR) in foreign and local currencies, as well as the priority unsecured rating of the Dutch mining and metals group Metinvest B.V. Ukrainian businessman Rinat Akhmetov (Metinvest) at the speculative level of "CCC".
The rating agency notes that the confirmation reflects increased operational risk since Russia's invasion of Ukraine, including the occupation and damage to some assets, as well as ongoing logistics and energy constraints.
At the same time, the group generates cash flows from its international asset base, which should support its ability to service its financial obligations in 2024 and 2025.
The agency estimates about 20% The company's EBITDA in 2024 will be generated by assets outside of Ukraine.
Fitch expects Metinvest to be able to generate significant positive free cash flow (FCF) in 2024, driven by expected growth in mining sales volumes following the partial resumption of exports from the Black Sea and low overall capital investment offsetting increased working capital outflows.
Earlier this year, Metinvest partially repaid approximately EUR112 million of its 2025 bonds and USD56 million of its 2026 bonds. The next significant maturity is the EUR183 million outstanding 2025 notes due next June.
