1 Apr 2020 10:47
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. ММК 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 -0.13х 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
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| ISIN: | US5591892048 |
| Category Code: | MSCM |
| TIDM: | MMK |
| LEI Code: | 253400XSJ4C01YMCXG44 |
| Sequence No.: | 55886 |
| EQS News ID: | 1012609 |
| End of Announcement | EQS News Service |
UK Regulatory announcement transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.