International credit ratings agency Fitch Ratings has announced that it has upgraded Russian steel producer Magnitogorsk Iron and Steel Works’ (MMK) long-term credit rating to 'BBB-' from 'BB+' with a stable outlook.
Fitch stated that the upgrade to MMK’s rating reflects MMK's substantial deleveraging and Fitch's view that the company's financial profile will remain conservative. MMK's rating also reflects its strong position in the Russian market (70-75 percent of sales), as a supplier of a wide range of high value-added steel products. Fitch expects a soft rebound in Russian steel demand in the mid-term, which should also support the company's ability to maintain its credit profile.