On August 19, 2013, Moody's Investors Service downgraded Raspadskaya's corporate family rating (CFR) to B2, with a negative outlook, the rating agency informed.
The rating action reflects Moody's expectation of prolonged softness in coal prices, which will continue to negatively affect the company's financial metrics over the next 12-18 months.
As stated by Denis Perevezentsev, a Moody's Vice President and lead analyst, the downgrade of Raspadskaya's rating was prompted by continued deterioration in the metallurgical coal sector, which is likely to remain oversupplied for at least several quarters as a result of weak demand from the end-user steel industry.
OJSC Raspadskaya (tax number: 4214002316) unites several enterprises of a single territorial production complex in Kemerovo region: three mines including CJSC Koksovaya acquired in April 2010 which was affiliated with the mine Raspadskaya Koksovaya (currently under construction) in February 2011; one open-pit mine, a beneficiation factory as well as enterprises of the transport and production infrastructure. 80% of common shares of the company are owned by Corber Enterprises Limited which itself is owned on a parity basis by the management of OJSC Raspadskaya and Evraz Group S.A.
IFRS net loss of Raspadskaya for 2012 was $30.988 million against a profit of $135.717 million the year before. Revenue decreased by 24.83% to $532.15 million from $707.97 million, operating profit 45.07-fold to $4.183 million from $188.532 million, loss before tax was $30.445 million against $177.288 million profit, adjusted EBITDA decreased 2.28-fold to $140.859 million c $320.812 million, EBITDA margin to 26% from 44%