S&P upgrades Zlomrex

Standard & Poor's said it raised the long-term corporate credit rating on Zlomrex SA to CCC+ from CCC-, along with its short-term corporate credit rating to B from C.

The outlook was revised to stable from negative.

The upgrades reflect a view that Zlomrex's default risk has decreased thanks to improved profitability, S&P said.

The improvement in profitability is a result of supportive conditions in the steel industry, as well as the company's improving liquidity following the completion of the disposal of its distribution activities, the agency said.

At the moment, S&P said it still qualifies Zlomrex's liquidity as less than adequate because the company still needs to rebuild working capital and re-establish its relationships with Polish banks.

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