OREANDA-NEWS. July 22, 2010. Fitch Ratings has assigned Ferrexpo, a major Ukrainian pellets producer, a long-term foreign currency issuer default rating of 'B' and a short-term rating of 'B'. The outlook determined by Fitch is stable. The ratings of Ferrexpo reflect its significant iron ore reserves and mine development plans, which are expected to result in a more than 50% increase in production volumes over the next five years.

Millennium Capital: the news is positive for the impending Ferrexpo Eurobonds. The action on the company corresponds with the agency’s upgrade of the sovereign rating of Ukraine. Ferrexpo completed the road-show July 16 planning to place Eurobonds worth USD 500mn. We see Metinvest Eurobonds as the nearest comparable bonds to the Ferrexpo and expect the coupon for the latter to be set at about 10.5-11.0%.