Credit rating agency Moody's Investors Service changed the outlook for Bulgaria's steel mill Kremikovtsi from normal to negative. The rating remains at Caa1, Thomson Financial reported on Thursday, as quoted by BTA.

Moody's explained the downgrade with the lower revenue per tonne and the resulting decline in profit and revenue margins for the first half of the year. The reasons behind are the higher prices for utilities and raw materials, as well as the higher spending on labour and fixed costs.

Nonetheless, Moody's recognised that the operational results of the company for the first six months of the year remain stable whereas the annual profit before tax, interest and amortisation remained lower than forecast.