On April 8, the rating agency Fitch Ratings upgraded company’s Long-Term Issuer Default Rating to BBB from BBB- with Stable Outlook.
In its press release Fitch Ratings notes that the rating upgrade reflects MMK’s ability to maintain a conservative financial profile during market turbulence due to the company’s low cost of operations, focus on high-value added (HVA) products, leading positions on the Russian steel market and high profit margins through the cycle.
Fitch also admits that MMK has one of the lowest leverages among steel companies globally. After MMK repaid most of its debt in 2015-2016, the company had almost zero net debt and was committed to keeping low debt levels.
MMK is rated above the BBB- Country Ceiling for Russia (BBB-/Positive). This is in line with Fitch’s Rating Non-Financial Corporates Above the Country Ceiling Rating Criteria and takes into account the company’s strong hard-currency external debt service ratio, which is supported by sufficient cash flows from exports and foreign assets and by an overall low leverage. (MMK/Ukrainian metal)
