Moody's upgrades ratings of Ferrexpo, Metinvest, MHP in Ukraine to 'B3'
Moody's Investors Service (Moody's) has upgraded to B3 from Caa1 the corporate family ratings (CFRs) and to B3-PD from Caa1-PD the probability of default ratings (PDRs) of three companies operating in Ukraine: Britain's Ferrexpo Plc with assets in Ukraine, Metinvest B.V. (the Netherlands), the holding company of Metinvest Group, and MHP SE, the holding company of Myronivsky Hliboproduct (MHP) agricultural holding.
Concurrently, Moody's has upgraded the national scale corporate family ratings (NSRs) of Metinvest and MHP to A3.ua from Baa3.ua and the senior unsecured ratings of notes issued by Ferrexpo Finance Plc to B3 from Caa1.
The outlook on the ratings for all of these companies has been changed to stable from positive.
The rating action follows Moody's upgrade of Ukraine's government bond rating to Caa1 from Caa2, with a stable outlook, and raising of the foreign-currency bond country ceiling to B3 from Caa1 on 21 December 2018.
The business profiles and financial metrics of Ferrexpo, Metinvest, and MHP are strong for a B3 rating. However, the companies are directly exposed to Ukraine's political, legal, fiscal and regulatory environment, despite a significant share of export revenues, given that most or all of their assets are located within the country.