OREANDA-NEWS. July 12, 2010. Moody's has changed the outlook for Metinvest, the major steel producer in Ukraine, to stable from positive, the agency reported July, 9. The rating action was prompted by a recent announcement made by Metinvest that it was in negotiations to acquire a significant stake (at least 75%) in the assets of Mariupol Illich Steelworks, another large Ukrainian steel producer. Agency expects that the cash outflow for this acquisition over the next two years might lead to a material increase in total debt of the group.

Millennium Capital: the news is negative for METINV. The step by Moody’s may lift the cost of borrowing for the company somewhat, although we do not perceive the risk of illiquidity in the short-term to be high.