Fitch ups MMK from Negative to Stable
7 May 2015 (09:22)
May 7, 2015. Fitch Ratings changed Magnitogorsk Iron & Steel Works (MMK) long-term Issuer Default Rating outlook from Negative to Stable and confirmed the rating at BB+.
‘The rating is reflexive of MMK’s strong position on the Russian market; the company sells a wide range of steel products with high value-added. The recent changes in the rating outlook indicate a considerable decrease in the company’s leverage last year,’ the agency explains.
Fitch says MMK’s consolidated debt dropped by $0.6bn in 2014. Compared with 2011, this debt decreased by $1.8bn and is expected to keep going down with the help of funding and operating cash flow mechanisms. The company is generating a positive FCF at the moment, so Fitch expects MMK to maintain this trend in 2015 and 2016 thanks to its moderate capital investment program.
‘The rating is reflexive of MMK’s strong position on the Russian market; the company sells a wide range of steel products with high value-added. The recent changes in the rating outlook indicate a considerable decrease in the company’s leverage last year,’ the agency explains.
Fitch says MMK’s consolidated debt dropped by $0.6bn in 2014. Compared with 2011, this debt decreased by $1.8bn and is expected to keep going down with the help of funding and operating cash flow mechanisms. The company is generating a positive FCF at the moment, so Fitch expects MMK to maintain this trend in 2015 and 2016 thanks to its moderate capital investment program.
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