S&P ups MMK long-term rating

Standard & Poor's said it raised its long-term corporate credit rating on OAO Magnitogorsk Metallurgical Kombinat (MMK) to BB- from B+, reflecting the company's strong operating and financial performance in 2003 and the first half of 2004.

The outlook is stable.

At the same time, the Russia national scale rating on MMK was raised to ruAA-.

"The company's strong performance is supported by favorable conditions in the global steel industry and the Russian domestic steel market," said S&P credit analyst Elena Anankina. "In Standard & Poor's view, MMK's strong profitability, cash flow generation, and solid liquidity help offset the uncertainties presented by the expected privatization of the government's 17.8% (23.8% voting) stake in the company."

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