Moody’s confirms rating of MMK at the level of Ba3

Moody's Investors Service has confirmed the corporate family rating (CFR) of MMK at the level of Ba3 and probability of default rating (PDR) at the level of Ba3-PD.

The outlook is stable. The affirmation of MMK’s ratings completes the process of review for possible downgrade.

Moody's notes in its press release that the cost competitiveness of MMK, confirmed by a decrease in the cost of slab to $243 per ton in the 4th quarter of 2014 as compared to $308 per ton in the 3rd quarter of 2014, will remain against the background of the fall in iron ore prices, improvement of the structure of raw materials and the weakening of the ruble by 42% in 2014.

Moody's reports that such cost reduction, along with sufficient liquidity, increasing the share of exports and decline in the debt burden in 2014, contributed to strong financial performance in 2014 and established a reserve for the company within the rating category Ba3. This additional reserve will allow the company to operate comfortably in 2015.