April 8, 2015. The international rating agency Moody’s Investors Service confirmed Magnitogorsk Iron & Steel Works/MMK CFR at Ba3; the company’s PDR was confirmed at Ba3 PD, with Stable rating outlook.

This confirmation completes the rating re-evaluation procedure that was instituted for a number of Russian companies on December 23 because of a dramatic deterioration of conditions for operating in Russia and increased risks of a prolonged economic downfall.

Moody’s explains in their press release that MMK should remain competitive expenses-wise (for one, the prime cost of slabs dropped from $308 per 1,000 kg in the Q3’14 down to $243 in Q4’14) given that ferrous ore prices are going down, the company’s raw resource structure improved, and the ruble grew 42% weaker in 2014.

According to the agency, the decrease in prime costs, combined with sufficient liquidity, a steadily growing share of exported goods, and smaller debt burden in 2014 facilitated the company’s impressive financial performance last year and secured a surplus for the position within the Ba3 range. This surplus should let the business operate comfortably in 2015.