S&P lifts Metalloinvest view to stable

S&P said it revised the outlook on JSC Holding Co. Metalloinvest to stable from negative.

The agency also said it affirmed the BB long-term corporate credit rating, along with the BB ratings on the company's bonds issued through Metalloinvest Finance Ltd.

The outlook revision follows an observation of a positive trend in iron ore prices and an expectation that Metalloinvest will report strong financial results for the second half of 2016, S&P said.

The strong financial results are due to the company’s de-leveraging efforts and higher than average profitability for its industry, the agency said.

The ratings also consider the possibility that market conditions could soften over the next two years due to fluctuations in iron-ore demand, new capacity additions globally and the potential restart in 2017 of mining company Samarco's pellet operations in Brazil, S&P said.

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