Moody's lowers MMK

Moody's Investor's Services said it has downgraded the Ba2 corporate family rating and Aa2.ru national-scale rating of MMK to Ba3 and Aa3.ru, respectively.

The outlook remains stable.

The agency said that the rating action was prompted by a significant weakening in the global demand for steel products, the strong reduction of steel prices leading to likely lower profitability and weaker cash flow generation capability in 2009 and potentially in 2010.

It is estimated that over the last three months, MMK increased the absolute level of debt while the cash flow generation weakened which is likely to lead to an increased leverage in 2009 beyond the trigger for downgrade of 2 times EBITDA that the agency said it has set for the rating category.

© 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.