S&P changes Koks to stable

S&P said it revised its outlook on Koks PJSC to stable from positive and affirmed the B long-term issuer credit rating on the company.

In addition, the agency affirmed the B issue rating on Koks' senior unsecured bond.

S&P said the revision reflects an expectation that Koks will achieve weaker improvements in credit metrics over 2018-2019 than the agency previously expected, with funds from operations to S&P-adjusted debt not reaching 30%.

“Despite an almost 30% increase in Koks' annual coal production in 2017, the output was lower than expected initially: 2.8 million tonnes compared to roughly 4 million tonnes,” the agency said in a news release.

“This was mainly due to the delayed start of the second stage of the Butovskaya and Tikhova mines, followed by operational issues at the former mine affecting the speed of the ramp-up.”

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