International rating Agency Moody’s Investors Service and Fitch Ratings upgraded the credit ratings of Metinvest B. V., the parent company of the international vertically integrated mountain-metallurgical group “Metinvest” to levels Caa2 (stable) and B (stable Outlook), respectively.
As reported in a press release on Friday, the rating upgrade occurred after the successful completion of debt restructuring of the group in March 2017.
The “Metinvest” says that Moody’s raised the corporate rating to Caa2 (stable Outlook) from Caa3 level. The rating of Metinvest is limited by the country ceiling of Ukraine for debts in foreign currency at the level Caa2.
However, according to the matrix of the steel industry, published in Moody’s opinion on the creditworthiness of March 24, 2017, and is based on Moody’s forecast for 12-18 months as at March 2017, a rating of “Metinvest” on the matrix, if he was not constrained by the country ceiling of Ukraine, would be at the level of Ba1, which is seven levels above the currently assigned rating, says the company.
Fitch ratings has upgraded long-term Issuer default rating in foreign currency “Metinvest” to the level of B (Outlook stable) from the level of RD, which is one level above the country ceiling of Ukraine, which is at B-. A rating of first priority secured bonds are also upgraded to level B.
“After the recently concluded debt restructuring this is an independent rating of international rating agencies confirms that the group liquidity is improved”, – commented General Director of “Metinvest” Yuri Ryzhenkov, which quoted the press service.
As reported, Metinvest B. V. 22 March 2017 has announced the completion of restructuring of its financial debt totaling $2.3 billion In a result of the agreement, three issues of Eurobonds of the group, maturing in 2016, 2017 and 2018 were cancelled, which also means the abolition of defaults and other obligations to all issues. Instead of these releases was carried out a new issue of Eurobonds in the amount of $1.2 billion maturing at the end of 2021 and the new conditions.
In addition, four agreements for the syndicated lines of credit pre-export financing was set forth in a new wording which provides for the abolition of defaults and other obligations along these lines. The new version, among other things, provides for the Union of the four lines of credit one to $1.1 billion with maturity in mid-2021.
“Metinvest” at the end of may 2016 agreed with the creditors ‘ Committee restructuring of Eurobonds and PXF-financing. The agreement concerned three issues of Eurobonds and PXF-financing of $1.07 billion, taking into account the capitalisation of part of interest in January this year, the nominal volume of issue of Eurobonds maturing in 2016 amounted to $RUR 89.79 million Eurobond-2017 –$305,33 million and Eurobonds-2018 –$790,94 million
“Metinvest” at the end of December 2016, appealed to the Eurobond holders and Bank lenders providing PXF-financing, a proposal to convert all bonds into a single issue of Eurobonds, and all loans under the PXF-financing – one line of credit.
The company, in particular, proposed to combine all three sovereign bonds into a single issue of Eurobonds with a maturity until 31 December 2021, as well as four of the syndicated credit line at PXF-financing – one line of credit.
“Metinvest” February 8 reported that the High court of England and Wales (High Court of Justice Chancery Division of England and Wales) approved the restructuring of its liabilities to bondholders and banks-creditors.
Metinvest is a vertically integrated mining group of companies managing assets in every link of the production chain from the extraction of iron ore and coal and coke production up to the release of semi-and end products of steel pipes and coils and also manufacture other products with high added value. The group consists of mining and metallurgical enterprises located in Ukraine, Europe and the United States, has a sales network covering all key global markets.
The main shareholders of Metinvest group are SCM (71,24%) and “Smart holding” (from 23.76%), partnering in company’s management.
OOO “Metinvest holding” – managing company of Metinvest group.