Bloomberg reported that OAO Severstal, Russia second largest steel producer jumped to a one-month high as Moody’s Investors Service raised the company rating to one step below investment grade, citing profitability and “healthy” cash flow.
The stock surged 3% to RUB 386.20 by the close in Moscow, the highest price since May 3. Severstal USD 500 million of Eurobonds due 2016 extended gains, cutting the yield by 51 basis points or 0.51 percentage point to 6.593%. A close at this level is the lowest since May 11.
Mr Steven Oman Moody analysts said “Today rating action reflects continued improvement in Severstal operating performance and financial profile including solid profitability aided by a favourable cost profile and healthy cash flow generation.”