Fitch rates Severstal bond B+

Fitch Ratings said it assigned OAO Severstal's RUB 15 billion bond issue a final senior unsecured rating of B+ and kept it on Rating Watch negative. The issue forms part of Severstal's new RUB 45 billion domestic bond issuance program, which has a senior unsecured rating of B+.

Severstal's ratings consist of a long-term foreign-currency issuer default rating at B+, long-term local-currency issuer default rating of B+, senior unsecured rating of B+ with recovery rating of RR4, national long-term rating of A(rus) and short-term issuer default rating of B. The recovery rating for the bond issue is RR4. The ratings are on Ratings Watch negative.

The assigned rating reflects the agency's review of the final document, which conformed to information already received. The instrument is structured as a senior unsecured obligation of Severstal and carries a coupon rate of 14%, the agency said.

Fitch said it considers Severstal's current liquidity position to be adequate.

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