PJSC Magnitogorsk Iron and Steel Works: Standard & Poor's Global Ratings revises MMK outlook to positive

PJSC Magnitogorsk Iron and Steel Works (MMK) 
PJSC Magnitogorsk Iron and Steel Works: Standard & Poor's Global Ratings 
revises MMK outlook to positive 
11-Dec-2019 / 13:51 CET/CEST 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
Press Release 
 
11 December 2019 
Magnitogorsk, Russia 
 
      Standard & Poor's Global Ratings revises MMK outlook to positive 
 
 PJSC Magnitogorsk Iron & Steel Works' ("MMK", or "the Company") (MICEX-RTS: 
  MAGN; LSE: MMK), one of the world's largest steel producers, is pleased to 
 announce that Standard & Poor's Global Ratings has revised MMK outlook from 
                       stable to positive and affirmed the rating at 'BBB-'. 
 
 The outlook revision reflects robust performance of Russian steel producers 
 at the environment of global steel industry downturn. The solid performance 
is backed by low production cost and stable demand for steel in the country. 
 
        The S&P outlook upgrade reflects MMK's ability to maintain a prudent 
          financial policy by having the lowest leverage among Russian steel 
   producers, keeping CAPEX discipline and sticking to conservative dividend 
                                                policy. 
 
                                           S&P commented in a press release: 
 
   "The positive outlook on MMK reflects the possibility that we could raise 
     the ratings in the next 24 months if the company maintains solid credit 
   metrics, with FFO to debt above 60%, even if industry conditions are more 
      challenging than our current base-case scenario, while maintaining its 
                                             conservative financial policy". 
 
                                                About MMK 
 
     MMK is one of the world's largest steel producers and a leading Russian 
    metals company. The company's operations in Russia span the entire value 
chain from iron ore processing to downstream production of rolled steel. MMK 
   produces an extensive range of steel products with a predominant share of 
high-value-added products. In 2018, the company produced 12.7 million tonnes 
        of crude steel and 11.7 million tonnes of commercial steel products. 
 
    MMK is one of the cost leaders in the industry with leading positions in 
      profitability. In 12M 2018, the Company generated USD 8,214 million in 
   revenue and USD 2,418 million in EBITDA. MMK Net Debt/EBITDA ratio is the 
     lowest in the industry - (0.08x) as of 2018. The Company has investment 
                                     grade ratings from Fitch, Moody's, S&P. 
 
 MMK is listed on Moscow Stock Exchange and the Company's GDRs are traded on 
               the London Stock Exchange. The Company's free-float is 15.7%. 
 
                                                Investor contacts 
 
Veronika Kryachko 
 
tel .: [phone] 
 
E-mail: [e-mail] 
 
                                                Media contacts 
 
Dmitry Kuchumov 
 
tel.: [phone] 
 
E-mail: [e-mail] 
 
ISIN:          US5591892048 
Category Code: MSCM 
TIDM:          MMK 
LEI Code:      253400XSJ4C01YMCXG44 
Sequence No.:  34899 
EQS News ID:   933897 
 
End of Announcement EQS News Service 
 
 

(END) Dow Jones Newswires

December 11, 2019 07:51 ET (12:51 GMT)