PJSC Magnitogorsk Iron and Steel Works (MMK)
PJSC Magnitogorsk Iron and Steel Works: Standard & Poor's Global Ratings
revises MMK outlook to stable
01-Apr-2020 / 11:47 CET/CEST
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1 April 2020
Magnitogorsk, Russia
Standard & Poor's Global Ratings revises MMK outlook to stable
PJSC Magnitogorsk Iron & Steel Works' ("MMK", or "the Company") (MICEX-RTS:
MAGN; LSE: MMK), one of the world's largest steel producers, announces that
Standard & Poor's Global Ratings has revised MMK outlook from positive to
stable and affirmed the rating at 'BBB-'.
The outlook revision reflects uncertainties about near-term economic
prospects, demand/supply and pricing for steel and raw materials, potential
protection measures, and supply chain disruptions in the international steel
markets. It also reflects that the S&P revised expectation that GDP will
contract in Russia by 0.9%, from 1.8% growth previously, which, coupled with
COVID-19 spread prevention measures, would result in a reduction in steel
demand.
The stable outlook balances MMK's currently very significant financial
cushion with the S&P expectation of bottom-of-the-cycle conditions for the
steel market in 2020 and risks related to COVID-19.
S&P commented in a press release:
"We don't expect MMK's leverage to become meaningful in 2020, as the
company's debt was below its cash balances at the beginning of 2020. We
therefore anticipate MMK's FFO to debt to be much higher than 60% in the
coming years, including 2020".
About MMK
MMK is one of the world's largest steel producers and a leading Russian
metals company. The Company's operations in Russia include a large
steel-producing unit encompassing the entire production chain, from the
preparation of iron ore to downstream processing of rolled steel. MMK turns
out a broad range of steel products with a predominant share of
high-value-added products. In 2019, the Company produced 12.5 mln tonnes of
crude steel and 11.3 mln tonnes of commercial steel products.
??? is an industry leader in terms of production costs and margin. MMK Group
had revenue in 2019 of $7,566 mln and EBITDA of $1,797 mln. MMK's debt load
is the lowest for the industry. Net debt/EBITDA ratio was -0.13? at the end
of 2019. The Company's investment-grade rating is confirmed by the leading
global rating agencies Fitch, Moody's, S&P.
MMK's ordinary shares are traded on Moscow Exchange, while its depositary
receipts are traded on the London Stock Exchange. Free float amounts to
15.7%.
Investor contacts
Veronika Kryachko
tel.: +7 (3519) 25-75-01
E-mail: kryachko.vs@mmk.ru
Media contacts
Dmitry Kuchumov Oleg Egorov
tel.: +7 (499) 238-26-13 tel.: +7 (499) 238-26-13
E-mail: kuchumov.do@mmk.ru E-mail: egorov.oa@mmk.ru
ISIN: US5591892048
Category Code: MSCM
TIDM: MMK
LEI Code: 253400XSJ4C01YMCXG44
Sequence No.: 55886
EQS News ID: 1012609
End of Announcement EQS News Service
(END) Dow Jones Newswires
April 01, 2020 05:47 ET (09:47 GMT)
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