Fitch Ratings promotes MMK’s rating
20 May 2011 (09:14)
The international rating agency Fitch Ratings promoted the credit rating of Magnitogorsk Iron & Steel Works (MMK).
The company’s long-term Issuer Default Rating was increased from BB to BB+, whereas its long-term national scale rating went up from АА- (rus) to АА (rus), with Stable rating outlook.
Fitch Ratings reports the improvement in the ratings indicates the completion of large-scale investment projects for the year 2011, namely, Mill 2000 and the metallurgical facility ММК-Аtakas in Turkey), which makes the company’s position of a value-added goods manufacturer significantly stronger. This is also good in terms of geographical diversity of MMK’s assets and profits.
According to Fitch’s estimates, the Russian steel market has retained its strong fundamental characteristics, so the Russian companies can expect a positive development of affairs due to the projected actual increase in the demand for steel on the home market.
The company’s long-term Issuer Default Rating was increased from BB to BB+, whereas its long-term national scale rating went up from АА- (rus) to АА (rus), with Stable rating outlook.
Fitch Ratings reports the improvement in the ratings indicates the completion of large-scale investment projects for the year 2011, namely, Mill 2000 and the metallurgical facility ММК-Аtakas in Turkey), which makes the company’s position of a value-added goods manufacturer significantly stronger. This is also good in terms of geographical diversity of MMK’s assets and profits.
According to Fitch’s estimates, the Russian steel market has retained its strong fundamental characteristics, so the Russian companies can expect a positive development of affairs due to the projected actual increase in the demand for steel on the home market.
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