Fitch Ratings promotes MMK outlook

The rating agency has recently promoted the rating outlook of Magnitogorsk Iron & Steel Works (ÌÌÊ) from Stable to Positive; the enterprise’s long-term IDR has been affirmed at BB.

Fitch Ratings reports the decision to improve the company’s rating outlook was brought about by a great increase in MMK’s ability to provide itself with raw materials over the last few years. What is more, the enterprise is to implement a number of investment projects to build up its raw materials base in the next three to four years.

The promotion of the rating outlook also stems from the agency’s positive opinion of MMK’s organic growth strategy and its focusing on the high-value-added produce. For instance, MMK has increasingly more goods manufactured via its Mill 5000 designed for making O&G products; besides, the company keeps working on its MMK Atakaş project. This is what helps the enterprise to diversify its sales geographically and to increase the range of the goods it offers, Fitch Ratings says.

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