WASHINGTON (Sputnik) — Russian steelmakers reduced their debts in 2014 as profitability significantly improved because of the ruble’s devaluation against the US dollar, successful cost-cutting programs, and the completion of investment cycles, according to Moody’s.
"Steelmakers are in a strong position to withstand an anticipated 10% drop in domestic steel demand in 2015 and ongoing weakness in 2016," Perevezentsev said. "The increase in exports and lower imports compensate for our expectation of a fall in domestic demand."
However, falling oil prices and international sanctions against Moscow had a negative impact on the construction sector in Russia, which is the key consumer of steel in the country, the press release said.
Nevertheless, the agency believes Russian steelmakers can "comfortably cover" future debt repayments using the money cushion they have accumulated.
