Fitch Ratings promotes MMKs rating

The international rating agency Fitch Ratings promoted the credit rating of Magnitogorsk Iron & Steel Works (MMK).

The companys long-term Issuer Default Rating was increased from BB to BB+, whereas its long-term national scale rating went up from - (rus) to (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 -takas in Turkey), which makes the companys position of a value-added goods manufacturer significantly stronger. This is also good in terms of geographical diversity of MMKs assets and profits.

According to Fitchs 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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