It is reported that Fitch Ratings has assigned an expected senior unsecured rating of BB-an upcoming issue of bonds Steel Capital SA representing a loan participation of 500 million maturing in 2016 The final rating will be assigned upon receipt of final documentation for the issue which should correspond to information already received, said in a press release from the agency.

This bond issue is intended solely for financing a loan to Severstal as a borrower. In this case, is believed to bondholders agree that the issue of payment for Steel Capital SA linked exclusively to the creditworthiness of Severstal.

The agency said "The ratings are constrained by uncertainty about the strategy of the company majority shareholder with respect to Lucchini SpA and Severstal exposure to risks associated with deficiencies of the business environment in Russia and the attendant political, business and regulatory risks above average."

(Sourced from bonds.finam.ru)