The Outlook revision is associated with the uncertainty of the state of the economy in the short term, the balance of supply and demand and prices for steel products and raw materials, as well as the possible rise of protectionism and disruptions in supply chains for global steel markets. The forecast revision reflects expectations S&P Russia's GDP downward by 0.9% instead of rising by 1.8%. According to the Agency, the adjustment of expectations in conjunction with measures to counter the spread of COVID-19 will have a negative impact on demand for steel.

"Stable" Outlook takes into account, on the one hand, substantial financial strength of the CMI, on the other – the expectations of S&P by adverse conditions in the steel markets and the risks associated with COVID-19.

In its press release, S&P said.

"We do not expect significant growth in the debt burden of the CMI in the year 2020, since the beginning of the year balances are fully covered the debt. Thus, the rate FFO/Debt expected at a level significantly above 60% in the coming years, including the year 2020".

Information about MMK

PJSC "MMK" is one of the world's largest steel producers and holds a leading position among the enterprises of ferrous metallurgy of Russia. The company's assets in Russia include a large metallurgical complex with full production cycle from preparation of iron ore raw materials and finishing deep processing of ferrous metals. MMK produces a broad range of steel products with a predominant share of products with high added value. In 2019, the Company produced 12.5 million tons of steel and 11.3 million tonnes of commercial steel products.

MMK is one of the industry leaders in production costs and profitability. The MMK Group's revenue for the year 2019 was 7 566 million dollars, EBITDA – 1 797 million dollars. MMK's debt burden is the lowest in the industry. The ratio of Net Debt/EBITDA by the end of 2019 is -0,13 H. Investment rating of the company is confirmed by leading world rating agencies: Fitch, Moody's, S&P.

MMK Ordinary shares listed on the Moscow Stock exchange and the Depositary receipts of the Company are traded on the London Stock Exchange. The proportion of shares in free float is 15.7%.

Service investor relations

Kryachko Veronica tel: +7 (3519) 25-75-01 E-mail: kryachko.vs@mmk.ru

External communications service

Dmitry Kuchumov tel: +7 (499) 238-26-13 E-mail: kuchumov.do@mmk.ru

Oleg Egorov tel: +7 (499) 238-26-13 E-mail: egorov.oa@mmk.ru

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