Fitch lowers Evraz

Fitch Ratings said it downgraded Evraz Group SA's long-term foreign-currency issuer default and senior unsecured ratings to BB- from BB, Mastercroft Ltd.'s long-term issuer default rating to BB- from BB and Evraz Securities SA's senior unsecured rating to BB- from BB.

Evraz Group and Mastercroft's long-term foreign-currency issuer default ratings remain on Rating Watch negative, and Evraz Group and Evraz Securities' senior unsecured ratings remain on Rating Watch negative.

The short-term issuer default ratings were affirmed at B.

Fitch said the downgrade reflects its view that measures by Evraz's management to date have been insufficient to offset a fall in revenue following the significant decrease in global demand and prices for steel products.

The watch continues to reflect risks of potential covenant breaches under the company's various facilities, the agency said.

Evraz's 2009 net debt-to-EBITDAR ratio is expected to be 2.7x to 2.9x.

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