Fitch has rated Evraz Group’s bonds at “BB-”

Fitch Ratings has given the bonds of Evraz Group SA the final priority unsecured rating “BB-”, rating watch negative (RWN).

The  rating is at the same level with the long-term default rating of Evraz Group “BB-” which is also in the RWN list.

The income from bonds for $500 mln with the interest rate of 6.75% and settlement in 2022 was used for the purchase of the existing bonds of Evraz Group with the settlement in 2017 and 2018 and the existing bonds of Raspadskaya with the settlement in 2017.

We included the ratings of Evraz Group in the RWN list after the announcement of its annual results -2015 which turned out to be lower than we expected by the basic scenario. It reflected the general weak tendencies of the demand for steel in the Russian market, in particular, for steel of construction assortment. We think there is a higher risk that the results of creditability of Evraz Group will not return within the expected limits for the current rating, including the gross leverage by monetary funds from the operation activity which is stable and below 3.5, in the coming 2-3 years, analysts of Fitch report.