S&P revises Evraz view to stable

S&P said it revised Evraz plc’s outlook to stable from negative and affirmed its BB+ issuer rating.

“Evraz's recovering operating performance and credit metrics remove pressure from the rating.High prices and strong demand for steel across all Evraz's key markets will help it improve its EBITDA considerably in 2021, to about $2.9 billion-$3.2 billion, a roughly 45% increase from $2.2 billion in 2020. This will result in FFO to debt improving to 55%-65%, which is comfortably above our 45% minimum threshold for the current BB+ rating,” S&P said in a press release.

The agency said it does project Evraz’s FFO to debt to gradually retreat toward 45%-50% over the subsequent two-to-three years, as lower steel prices will cause EBITDA to decline to $2.4 billion-$2.8 billion over 2022-2023.

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