10th Dec 2019 15:32
(Alliance News) - Moody's Investors Service on Tuesday changed the rating outlook of Ferrexpo PLC to positive from stable, while also affirming its corporate family rating at B3.
All of Ferrexpo's processing and mining assets are located in Ukraine.
Moody's explained that the rating action follows its change of outlook on Ukraine's ratings to positive from stable and affirmation of its long-term issuer and senior unsecured ratings at Caa1.
Ferrexpo's business profile and financial metrics are strong for a B3 rating, Moody's said. However, its ratings remain constrained by Ukraine's B3 foreign-currency bond country ceiling and Caa1 government bond rating, which reflects its exposure to the political, legal, fiscal and regulatory environment of the country.
Looking ahead, Moody's said it could upgrade the ratings of Ferrexpo if Ukraine's sovereign rating or foreign-currency bond country ceiling was upgraded and the company did not suffer any material deterioration in its operating and financial performance.
Meanwhile, the ratings could be downgraded if Ukraine's sovereign rating or the company's performance were to deteriorate "materially".
Ferrexpo shares were trading 1.8% higher in London on Tuesday afternoon at 146.45 pence each.
By Evelina Grecenko; [email protected]
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