Aug 26. Fitch has confirmed Severstal's long-term issuer default rating (IDR) at BB, short-term IDR at B and national long-term rating at AA-(rus). According to the agency's press release, the long-term ratings carry a stable outlook. Such rating decision follows an agreement on the acquisition of PBS Coals Corporation's business via a takeover of Penfold Capital Acquisition Corporation after the merger of PBS and Penfold for USD 1.3 bn. "The scheduled acquisition is in line with Severstal's strategy aimed at M&As in the US in order to ensure raw material supplies" – Fitch noted. "This acquisition will make Severstal's assets better stocked with raw materials and improve their operating results. The transaction to take over PBS will enable Severstal to meet 40-50% of its need for coking coal in the US by in-house enterprises. Better raw material supplies will help secure necessary coal volumes and limit exposure to price volatility".