February 13, 2019
PAO Severstal (“Severstal”; “the Company”), one of the world’s leading vertically integrated steel and steel-related mining companies, announces that Moody’s has upgraded its rating on Severstal to Baa2 from Baa3 and changed its outlook from positive to stable.
Moody’s also raised Russia’s country ceilings for foreign currency debt to Baa2/P-2 from Baa3/P-3 and the ceilings for local currency-denominated debt and deposits to Baa1 from Baa2.
The rating agency underlined that upgrading the ratings of 12 companies from non-financial sectors, including Severstal, was a result of the exhibition of particularly strong credit metrics with a substantial share of foreign-currency revenue and strong liquidity profiles, which gives them a degree of resilience at times of sovereign stress. Moody’s commented in a press release: “All of these entities have robust business models, have low costs for their sectors and are visible players both in the domestic market and abroad”.
Alexey Kulichenko, CFO of Severstal, commented:
“We welcome Moody’s decision to revise Russia’s sovereign rating outlook and improve our company’s credit rating. This decision by one of the most prominent rating agencies is a positive endorsement of our updated strategy, the goal of which is to be the leader of the steel industry of the future and maintain our position as first choice for our customers, employees and partners.”
