OREANDA-NEWS. S&P Global Ratings said today that it had raised to 'BBB-' from 'BB+' its issue rating on the US$700 million loan participation notes (LPNs) issued by NLMK PJSC's finance special purpose vehicle (SPV), Steel Funding Ltd. (NLMK is the borrower).

This upgrade follows our recent upgrade of NLMK to 'BBB-', as well as our approach to rating the debt instruments issued by NLMK and its SPV, Steel Funding Ltd., at the level of the corporate credit rating, in line with our updated group rating methodology.

We think that the US$700 million 2023 LPNs issued by Steel Funding Ltd. for the sole purpose of financing a similar terms loan between Steel Funding Ltd. and NLMK satisfy the requirements presented in our group rating methodology that allow those LPNs to be rated at the same level as equivalent-ranking debt of NLMK, as the underlying borrower, notably:All of the debt obligations of Steel Funding Ltd. are backed by equivalent-ranking obligations with equivalent payment terms issued by NLMK;Steel Funding Ltd. is a strategic financing SPV for NLMK set up solely to raise debt on behalf of the NLMK group; andWe believe that NLMK is willing and able to support Steel Funding Ltd. to ensure full and timely payment of interest and principal when due on the debt issued by it, including payment of any of Steel Funding Ltd.'s expenses.