Fitch Ratings, a global credit ratings and research firm, has upgraded OAO Severstal, the steel and steel-related mining company, to ‘BB+’ from ‘BB’ in its Long-term Issuer Default Rating. Severstal’s National Long-term rating has been upgraded to ‘AA(rus)’ from ‘AA-(rus)’. The upgrade reflects the company’s improved profitability as a result of its ongoing strategic focus on enhancing production efficiency as well as successful deleveraging.
Fitch specifically noted the efficiency improvements in the company’s mining business. The agency also emphasised Severstal’s solid business profile and strong financial position among other key rating drivers. Alexey Kulichenko, CFO of Severstal, commented, “We are pleased with Fitch’s recognition of Severstal’s continued success at improving its production efficiency and financial performance. We will continue our work to improve our results and we are confident that the rating upgrade will further strengthen the confidence of our investors, customers and partners.”
