Russian Steel Producer OJSC NLMK 'BBB-' Rating Affirmed On Agreement To Buy Additional 50% Stake In SIF; Outlook Stable Apr 11
Standard & Poors, April 2011
Abstract
Russian steel producer OJSC NLMK has announced its acquisition, for $600 million, of an additional 50% stake in Steel Invest and Finance (SIF), making NLMK the 100% owner of all rolling assets of its joint venture with Switzerland's Duferco. We think the transaction will likely add $1.5 billion to NLMK's adjusted debt and be moderately positive for its business risk profile. We believe that despite its higher debt, NLMK will successfully maintain healthy credit metrics. We are affirming our 'BBB-' long-term rating on NLMK. The stable outlook reflects our view that NLMK's fully adjusted ratio of funds from operations to debt will be about 50% at year-end 2011 and then improve to 60% in 2012-2013. PARIS (Standard & Poor's) April...
Companies mentioned in this report are:
- OJSC NLMK
Action: Affirmed
Action: Outlook: Stable
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research type: News
This product is a is a brief one-page announcement of no more than 500 words with a quote from the analyst. It is media and investor focused with no accompanying commentary article.
- OJSC NLMK
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