Moody's: Novolipetsk Steel view to positive

Moody's Investors Service said it changed the outlook for Novolipetsk Steel OJSC's Ba1 corporate family rating and the outlook on its Aa1.ru national scale rating to positive from stable.

This action reflects the company's continued solid financial results and conservative financial policy in 2009 in spite of the challenging global environment for steel producers, Moody's said.

The material improvements in the steel market in the second half of 2009 have continued in the first quarter and second quarter of 2010, which should help to further enhance the credit profile of the company, Moody's said.

The ratings are constrained by the company's significant exposure to the sales of semi-finished steel products, high capital expenditure requirements and exposure to export markets with the domestic market only accounting for 30% of sales, the agency said.

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