S&P also reconfirmed its ruAA- Russia national scale ratings for both companies, with stable outlook, and said in a news release that it attributed the decision to strong profitability and cash flow generation posted by the group in 2005, demonstrable progress in group consolidation, and successful integration of recently acquired assets.
"The rating action reflects another year of profitable and cash-generative consolidated operations, following the group's consolidation of its trading operations in 2004 and mining assets in 2004-2005," agency credit analyst Elena Anankina said in the news release.
Evraz Group is one of Russia's leading vertically integrated mining and metallurgical companies. It incorporates three large steel enterprises, as well as ore mining and coal producing facilities. The company holds more than 20% of the world market of primary vanadium raw materials.
In 2005, Evraz's EBITDA was $1.8 billion (28% margin), and free operating cash flow was $709 million (compared with $326 million in 2004).
