The leading global ratings agency Fitch Ratings has changed the outlook for the Russian steelmaking group Magnitogorsk Iron and Steel Works (MMK) to positive from stable and has affirmed its long-term issuer default rating at BB.
According to Fitch Ratings, the revision of MMK's outlook to positive from stable in part reflects improvements in MMK's raw material self-sufficiency levels in recent years together with expected additional developments in this respect over the next three to four years.
The outlook change also reflects Fitch's favorable view of MMK's business strategy of gradual organic growth and its focus on higher value-added product segments. Typical of this are the development of a new plate mill to supply the oil and gas industry, and the new Turkish steel mill joint venture MMK-Atakas. Together these measures will improve the company's geographic and product diversification, the agency concluded.