Moody’s drops Evraz notes to B3

Moody's Investors Service said it downgraded Evraz North America plc's corporate family rating and probability of default rating to B3 and B3-PD from Ba3 and Ba3-PD, respectively.

At the same time, the agency downgraded Evraz Inc. NA Canada's (EICA) senior secured notes to B3 from Ba3. The notes are guaranteed by EICA's parent – Evraz North America – and by Evraz Inc. NA and other subsidiaries of the parent and secured by a first lien on EICA and the guarantors' fixed and intangible assets and a second lien on the assets securing the asset-based credit facility.

The outlook is negative. This concludes the review initiated on Oct. 13.

Moody’s said the downgrade reflects the weak performance of Evraz North America resulting from the material drop in oil prices in 2015, which has impacted the company's oil country tubular goods business, challenging conditions in the U.S. steel industry as a result of high imports, moderate demand and steady price degradation over the course of 2015.

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