S&P Global Ratings raised its long-term corporate credit rating on Ukrainian iron ore producer Ferrexpo Plc to ‘B-‘ from ‘CCC’ and its short-term rating to ‘B’ from ‘C’, following the recent rally in the prices of iron ore in the world.
“The recent rally in the price of iron ore, supported by a tight supply of iron ore pellets, should result in improved cash flows for Ukrainian iron ore producer Ferrexpo PLC. The company’s liquidity has improved, supported by its increased cash balance and positive free operating cash flows, which should allow it to meet its debt maturities in 2017,” S&P said in a report.
S&P also raised the senior unsecured long-term rating on the debt issued by Ferrexpo Finance PLC to ‘B-‘ from ‘CCC’.
S&P said that the outlook was stable. It balances the improved liquidity position and the current elevated iron ore price against the heavy maturities in the coming two years. (Interfax/Ukrainian metal)