Rating upgrade to B1 by Moody's
Industrial and Metallurgical Holding (IMH), one of the world's leading suppliers of merchant pig iron and the largest producer of merchant coke in Russia, announces that Moody’s Investors Service (“Moody’s”) has upgraded rating of PJSC Koks from ‘B2’ to ‘B1’ with a stable outlook.
Moodys upgraded corporate family rating of PJSC Koks (Koks, including its subsidiaries, ‘the IMH’) to B1 from B2 and probability of default rating (PDR) to B1-PD from B2-PD. Concurrently, Moody's upgraded the IMH-2025 $350 million backed senior unsecured loan participation notes issued in September 2020 at a 5.9% annual interest rate, to B1 from B2. The outlook on both entities remains stable.
According to Moody's statement, published on October 22, 2021, the rating upgrade reflects IMH's deleveraging amid favorable market environment.
Sergey Frolov, vice-president for strategy and communications, commented on the event:
“We are pleased to see that Moody’s gave positive outlook for the merchant pig iron market and appreciated our financial performance. I would like to note that, in addition to the positive market conditions, our increasing production efficiency contributed to the outstanding financial performance achieved in 1H 2021. Timely maintenance combined with optimal production process mode provided for historically record high pig iron output. Сoal production also increased, which in conjunction with growing prices, had a considerable positive impact on IMH’s margins. Successful performance at all directions allowed us to decrease our Net Debt / EBITDA ratio to 2.1x and almost reach the target level”.