S&P rates Metinvest notes B-

S&P said it assigned its B- issue rating to the proposed senior unsecured notes of Metinvest BV, the holding company of a group of mostly Ukraine-based vertically integrated steel and mining assets.

The company is expecting to refinance the outstanding $1.2 billion notes due 2021 with new notes comprising a proposed indicative five-year tranche and an eight-year tranche. The proceeds will be used to refinance existing debt, S&P said.

The notes issue is part of the company's larger liability management exercise, and completion is subject to consent from different debtholders, including an acceptance of 75% of noteholders.

“We see the transaction as credit neutral, somewhat improving the company's liquidity profile, with lower maturities in the coming years,” S&P said in a news release.

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