Moody's completes periodic review of MMK

Moody's rating reflects the strong financial performance of Magnitogorsk Iron and Steel Works, but notes in its review that MMK is affected by the macroeconomic, regulatory and operating environment in Russia, as most of the company's metallurgical production is located in Russia ..

Moody's Investors Service has completed a periodic review of the ratings of Magnitogorsk Iron and Steel Works and other ratings associated with the same analytical unit. The review was conducted through a portfolio review, in which Moody's revised the relevance of the ratings in the context of relevant key methodologies, recent events, and a comparison of the financial and operating profile with peers with the same rating.

From 1 January 2019, it has been Moody's practice to issue a press release after each periodic review to announce its completion.

Long-term issuer rating Baa2 of Magnitogorsk Iron and Steel Works is one notch higher than the rating of Russian sovereign bonds Baa3 with a stable outlook and is at the level of the Russian country ceiling on debt in foreign currency. The rating reflects the company's strong financial performance, including a diversified product line with a significant share of high value added positions, low costs, strong domestic market position and balanced financial policy.

The MMK rating also takes into account the company's exposure to volatile steel and raw materials prices, relatively low self-sufficiency in basic raw materials and limited geographic diversification of sales. MMK continues to be affected by the macroeconomic, regulatory and operating environment in Russia, as the majority of the company's steel production facilities are located in Russia.