The international rating agency Fitch Ratigs raised the long-term rating of PJSC Severstal from BBB- to BBB on April 8, 2019, the outlook for the rating is Stable.
As the agency notes, the change in the company's rating is due to the “proven conservative financial policy of Severstal” during the period of volatile prices came in 2016–2017. and increased protectionism from 2018. ”
“ Due to the low cost of steel production, integration into iron ore and coal, focus on high value added products with a share of more than 45% in the sales structure and moderate capital expenditures, Severstal "Has reduced debt by about $ 1 billion over the past three years and has reached one of the lowest debt levels in the industry, with an overall debt to adjusted cash flow (FFO) ratio of 0.8x at the end of 2018," Fitch said.
“We welcome Fitch's decision to upgrade our company's credit rating. This confirms the high level of financial stability of the leading Russian metallurgical companies, ensured by a high level of internal efficiency, a strong balance sheet and a competitive market position, despite the volatility of markets and growing protectionism, "commented Aleksey Kulichenko, Deputy General Director for Finance and Economics at Severstal.
