Fitch affirms MMK ratings

Fitch Ratings said it affirmed Russia-based Magnitogorsk Metal and Steel Works' (MMK) senior unsecured foreign currency rating at BB-.

The outlook for the rating remains stable.

Fitch said the rating reflects MMK's strong track record in financial performance and accessing capital markets, and its planned focus on value-added products to support revenue growth. It also considers the company's competitive domestic positions and its ability to exploit the rising demand for steel in Russia as the domestic economy continues to grow.

However, the rating is constrained by corporate governance issues, in particular the level of transparency, given the concentration of control in the hands of the management.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.