Bloomberg reported that OAO Mechel, Russia largest producer of coal for steelmaking fell in US trading after Moody Investors Service cut the outlook on the company debt to negative from “stable.”

American depositary receipts declined 0.7% to USD 8.29 at 12:31 PM in New York. The stock is down 72% this year.

Mr Stanislav Ploschenko Chief Financial Officer said that Mechel may renegotiate debt covenants with lenders if the ratio of its net debt to earnings before interest, taxes, depreciation and amortization exceeds 3.5 this year. Moody’s rates the debt B1, four steps below investment grade.