Our credit view of Severstal, reflecting its strong financial metrics and liquidity, constrained by the volatile prices of steel and feedstock, and rouble exchange rate.
Although Severstal will increase total debt to finance both new development projects and dividend payouts, the resulting increase in leverage will be moderate and from a very low base.
Severstal will need to raise debt to help finance high capital spending and dividends over 2019-22. But it estimates the new projects will generate nearly $800 million in EBITDA from 2023.