Fitch affirms Novolipetsk Steel

Fitch Ratings said it affirmed OJSC Novolipetsk Steel's long-term issuer default rating at BB+, short-term issuer default rating at B and national rating at AA(rus).

The outlook is stable.

This follows its agreement to acquire U.S.-based steel pipe and tube manufacturer, John Maneely Co. for $3.53 billion on a debt- and cash-free basis.

The acquisition is in line with the company's strategy to expand production and sales by volume and geography, improve the product portfolio and to continue downstream integration in the core markets of the company, Fitch said.

The acquisition will further diversify its output, both by geography and product, the agency said, and enter into the profitable tube and pipe end-market.

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