Moody's may drop Evraz

Moody's Investors Service said it placed the Ba3 corporate family rating of Evraz SA under review for possible downgrade, along with its Ba2-rated senior unsecured notes totaling $300 million due in 2009 and B1-rated senior unsecured notes totaling $2.75 billion due in 2013, 2015 and 2018.

The review was prompted by the severity of the downturn in the steel industry, which is likely to lead to significantly lower cash flows generated by Evraz than has been previously anticipated, Fitch said.

The downturn could potentially impact the company's financial strength going forward more than had been expected, the agency said.

The review also reflects that despite notable progress in extending its short-term refinancing, the short maturity profile of its debt continues to make the company dependent on its ability to extend facilities and the uncertainty associated with this process, Moody's said.

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