International credit rating agency Standard & Poor's Ratings Services has announced that it has affirmed Russia-based leading global iron ore and hot briquetted iron (HBI) producer Metalloinvest’s ‘BB’ rating, while its outlook for the company remains negative.
S&P stated that its negative outlook on Metalloinvest factors in the pressure from the lower iron ore price environment and weakening market fundamentals in the industry, increased volatility in the country's financial markets, and Russian corporates' constrained access to capital markets. However, S&P expects that the Russian ruble’s devaluation and the company's favorable product mix will support Metalloinvest's margins while its debt declines. S&P also anticipates that Metalloinvest will continue to focus on reducing debt while maintaining adequate liquidity.