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Fitch ups MMK from Negative to Stable


07 May 201509:22. Разместил: public
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.
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