Moody's revises TMK rating outlook from stable to positive

Moody's Investors Service has affirmed the rating of one of the world's largest producers of steel pipes for the oil and gas industry. At the same time, Moody's affirmed the B1 rating of senior unsecured bonds issued by TMK Capital SA, a subsidiary of TMK. The rating outlook changed from stable to positive.

Moody's Vice President, Senior Credit Director Denis Perevezentsev said: Our decision to change TMK's rating outlook to positive mainly reflects the fact that the company has closed the sale of 100% of its US subsidiary IPSCO Tubulars Inc. Tenaris. in January 2020, as well as our expectation that TMK will use almost all of the proceeds from this transaction in the amount of about US $ 1.

In January 2020, TMK closed the sale of its 100% stake in IPSCO Tubulars Inc. Tenaris, a leading supplier of pipes and related services to the global energy sector, for approximately $ 1.1 billion. The deal was signed in March 2019 and has since been subject to regulatory approval, including the US antitrust authorities. Moody's expects TMK to use almost all of the funds raised from this transaction to pay off the debt.

The positive outlook reflects Moody's expectation that the company will be able to continue to demonstrate strong operating performance and maintain its improved financial profile, while maintaining good liquidity over the next 12-18 months.