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

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 
Dissemination of a Regulatory Announcement, transmitted by EQS Group. 
The issuer is solely responsible for the content of this announcement. 
 
                         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.: [phone] 
 
E-mail: [e-mail] 
 
                         Media contacts 
 
Dmitry Kuchumov            Oleg Egorov 
 
tel.: [phone]   tel.: [phone] 
 
E-mail: [e-mail] E-mail: [e-mail] 
 
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)