International ratings agency Fitch has revoked the ratings of eight Russian companies, according to media reports, as a part of the EU package of sanctions against Russia announced on March 15.
The list of the companies includes EVRAZ holding, which is one of the leading steel producers in Russia. In particular, the company’s Novokuznetsk-based steelmaking assets and coal and mining entities, which employ up to 30,000 workers, are under the restriction. The measure is a part of the EU’s decision to forbid credit ratings of “legal entities, organizations, which are established in Russia”. The agency plans to revoke the ratings of all Russian companies and their divisions by April 15.
The international ratings show the likelihood of the company refusing or being incapable of paying its debts. The lower the rating is the higher is the price to be paid for the loan service and therefore the lower creditors’ readiness is to buy the debentures. In fact, it means that major investors will stay away from the securities of such companies. Earlier, on March 10, the London stock exchange temporarily halted its listing of Evraz.