Metalloinvest (the “Company”) announces that the international rating agency Moody's Investors Service (“Moody's”) has upgraded the corporate rating of the Company to “Ba1” with a stable outlook from “Ba2” /Positive.
According to the agency's published report, the upgrade of Metalloinvest's rating to 'Ba1' reflects a decrease in the Company's debt burden, stable positive cash flow, high liquidity, a proactive stance on loan portfolio management, and improved corporate governance components.
Moody's analysts note that the Company has a strong competitive position in the iron ore markets due to low production costs and high profitability, a large share of products with high added value (pellets, HBI), a unique iron ore base with a high iron content up to 70% in iron ore concentrate, integration into the steel business, a diversified client base, as well as a long-term debt portfolio profile and conservative liquidity management.
At the same time, Moody’s upgraded to “Ba1” from “Ba2” the ratings of Eurobonds issued by Metalloinvest Finance D.A.C.
Alexey Voronov, Chief Financial Officer of the Company, commented:
“In 2018, Moody's was the first to revise the outlook on the Company's rating to positive from stable, thus noting the positive dynamics in operating and financial performance of Metalloinvest, as well as ongoing improvements to the Company in the area of corporate governance. We are grateful to Moody’s for the timely response to the positive results of the Company's work, which this year was reflected in the upgrade of Metalloinvest's rating to the level of “Ba1”.
Thus, after the rating was upgraded by S&P to BB + with a stable outlook in February 2019, the ratings of the Company are on the same level as investment grade in the opinion of two international credit agencies ”.
