International rating agency Moody's has affirmed the rating of Raspadskaya Coal Company (Raspadskaya), one of the largest coking coal producers in Russia, at B2 and has changed the outlook from negative to stable.
Moody's said that the affirmation of the rating and stabilization of outlook follows the acquisition by Evraz of an 82 percent controlling stake in Raspadskaya. The rating affirmation reflects Moody's view that demand in the metallurgical coal industry will remain weak in the near term following a substantive deterioration in 2013.
The stable outlook on the rating reflects the stable outlook of Evraz, the increased level of integration of Raspadskaya's operations under Evraz and Moody's view that market conditions, including coking coal prices, are unlikely to worsen meaningfully in 2014.