KIEV, Ukraine, April 12, 2019 /PRNewswire/ -- Metinvest B.V., ("Metinvest" or "the Group") today announces that it received an upgraded Credit rating from Fitch Ratings ("Fitch") on 10 April 2019. Metinvest's Long-Term Local and Foreign Currency Issuer Default Ratings (IDRS) have been raised from B to B+ with an unchanged Recovery Rating of RR4. Fitch's Outlook for Metinvest is "stable".
In its announcement about the upgrade, Fitch's points to Metinvest's improved capital structure, with an improved maturity profile and its commitment to prioritise capital expenditure, debt repayment and working capital funding over dividends. Capital expenditure for 2019 and 2020 is expected to be funded from internal cash flow generation.
Fitch also noted that it assesses Metinvest's business and financial profile is in the BB category. It also underlines that Metinvest's new B+ rating is now two notches above Ukraine's B- Country ceiling. This is attributable to a sustainable improvement in the Group's hard currency external debt service cover ratio.
Commenting on the announcement, Yuriy Ryzhenkov, CEO of Metinvest, said:
"The upgrade is great news for Metinvest and a further step on our journey to become a global player in our industry. Our improving credit rating is a reflection of our robust fundamentals, strong hard currency ratios, an EBITDA of more than US$2 billion, and a proven vertically integrated business model that is allowing us to take advantage of the strong pricing environment in our industry. The continuing confidence of the global investment community is an endorsement of Metinvest's long-term strategy."
Notes to Editors:
METINVEST GROUP is a vertically integrated group of steel and mining companies that manages every link of the value chain, from mining and processing iron ore and coal to making and selling semi-finished and finished steel products. It comprises steel and mining production facilities located in Ukraine, Europe and the US, as well as a sales network covering all key global markets. Metinvest's business is divided for financial reporting purposes into two segments: Metallurgical and Mining. Its strategic vision is to become a leading vertically integrated steel producer in Europe, delivering sustainable growth and profitability resilient to business cycles and providing investors with returns above the industry benchmarks. For the 12 months ended 31 December 2018, the Group reported revenues of US$11.9 bn and an EBITDA margin of 21%.
METINVEST HOLDING LLC is the management company of Metinvest Group.