Fitch rates EvrazSecurities notes B

Fitch Ratings said it assigned EvrazSecurities SA Luxembourg's $150 million senior five-year notes a final B rating with a stable outlook.

The new notes will be consolidated and combined with $150 million 10.875% five-year notes issued in August 2004 as a single series. Both issues are unconditionally and irrevocably guaranteed by Cyprus-based Mastercroft Ltd. (senior unsecured B) and its subsidiaries OJSC Novokuznetsk Iron and Steel Plant in Russia, and Gibraltar-based Ferrotrade Ltd.

Under the bond documentation the proceeds can be used for financing acquisitions of mining assets, and repayment of all amounts due under the existing loan facility provided for acquisition of such assets as well as for general corporate purposes. The issuer is an orphan special purpose entity of Mastercroft that also issued the 2006 notes in September 2003.

Half of the total proceeds ($300 million) has been used to repay a bridge facility loan provided by ING bank, CSFB and Commerzbank to acquire a Russian coal mine, Kachkanarski GOK. The rest of the proceeds will be used to finance future acquisitions.

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