S&P puts Evraz on watch

Standard & Poor's said it placed the BB- long-term corporate credit, bank loan and senior unsecured debt ratings on Evraz Group SA and its core subsidiary Mastercroft Ltd. on CreditWatch with negative implications.

"The CreditWatch placement reflects our view of heightened near-term downside risks for the long-term ratings. This is due to a more severe weakening of the group's operations than we had previously factored in, caused by the sharp downturn in the steel sector and macroeconomic environment," S&P analyst Alex Herbert said in a statement.

The agency said it is also concerned about potential breaches of the group's financial covenants, including 3x net debt to EBITDA, which is tested half-yearly.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.