S&P rates Evraz bond BB

Standard & Poor’s said it assigned preliminary B+ long-term foreign-currency and local-currency corporate credit ratings to Evraz North America Ltd.

The outlook is stable.

The agency also said it assigned a BB preliminary issue rating and 1 preliminary recovery rating to the $500 million high-yield senior secured bond to be issued by Evraz Inc. NA Canada, a 51% subsidiary of Evraz North America and unconditionally guaranteed by it and all of its material operating subsidiaries.

The preliminary ratings assume the successful placement of the bond. The proceeds from the bond will be used to prepay a portion of the shareholder loan to Evraz Group SA, the 100% owner of Evraz North America, S&P said.

The ratings reflect Evraz North America’s stand-alone credit profile, which is assessed at BB- and capped by the B+ rating on its 100% parent, Evraz Group SA, the agency said.

It is seen as a strategically important member of the Evraz group, given its 100% ownership, size, some operational integration with the group and the shared name, S&P said.

© 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.