Fitch Upgrades MMK's Rating To 'BBB'; stable outlook

In a press release, the agency notes that the upgrade reflects the company's ability to maintain a conservative financial profile in times of turbulence in the market due to low production costs, focus on high value-added products, leading positions in the Russian steel market and high profit margins at all stages of the economic Fitch also recognizes that MMK has one of the lowest leverage among the global steel companies. After the plant paid off most of its debt in 2015-2016, its net debt is practically at zero level. The company declares its intention to maintain minimum debt values ​​further. MMK's rating is higher than the corresponding country rating in Russia ('BBB-', outlook 'positive'). This is in line with the agency's practice of rating non-financial companies above the country ceiling and takes into account the company's strong external hard currency debt service, which is underpinned by significant operating cash flows from exports and foreign assets, as well as low leverage in general. About MMK

PJSC Magnitogorsk Metallurgical Plant is one of the world's largest steel producers and holds a leading position among Russian ferrous metallurgy enterprises. The company's assets in the Russian Federation represent a large metallurgical complex with a full production cycle, from the preparation of iron ore raw materials to the deep processing of ferrous metals. MMK manufactures a wide range of steel products with a predominant share of high value-added products. In 2018, the company produced 12.7 million tonnes of steel and 11.7 million tonnes of commercial steel products. MMK Group's revenue in 2018 amounted to $ 8.214 billion, EBITDA - $ 2.418 billion.

Contacts

Investor Relations: Serov Andrey tel .: +7 (3519) 24-52-97e- mail: ser .ru

External Communications Service: Dmitry Kuchumov tel .: +7 (499) 238-26-13e-mail: /a> Bulin Dmitry tel .: +7 (499) 238-26-13e-mail: [email protected]