Metalloinvest (the "Company"), a leading manufacturer and supplier of iron ore products and hot briquetted iron in the global market and one of the regional producers of high-quality steel, announces that the international rating agency Moody's Investors Service ("Moody's") has upgraded the Company's rating to ' Baa3 'with a stable outlook.
According to the published Moody's report, the rating upgrade takes into account the Company's unique vertically integrated business model, a consistent decrease in debt burden, changes in the corporate structure, world leadership in the production of commercial HBI in the world with low costs and an outstanding resource base.
In accordance with its methodology, Moody’s raised the credit rating of Eurobonds issued by Metalloinvest Finance D.A.C., a subsidiary of Metalloinvest, to ‘Baa3’ /stable.
Denis Perevesentsev, Vice President, Senior Credit Officer, Moody's, commented: “The upgrade reflects Metalloinvest's unique position as a vertically integrated iron ore and steel producer with an impressive share of value-added products (HBI, DRI, pellets, high quality steel), a large resource base, stable cash flow, consistent debt reduction and our expectation that the company will maintain a moderate level of debt burden in various price scenarios for ore and steel. "
Alexey Voronov, Deputy CEO for Finance and Economics of the Company, commented: “The positive rating action reflects an undeniable improvement in the Company's credit metrics, driven by strong financial and operating results, a commitment to its financial policies and a prudent approach to debt management. Over the past three months, Metalloinvest has received an upgrade to investment grade credit ratings from three international rating agencies, thus marking the 10th anniversary of its presence in international debt capital markets. The company strives to further improve its credit profile. "