Rating agency Moody's Investors Service has changed the outlook for Magnitogorsk Steel OJSC's ("MMK") Ba3 corporate family rating and the outlook on MMK's Aa3.ru national scale rating to positive from stable.

This rating action reflects the fact that in spite of negative global conditions for steel producers in 2009, the company demonstrated stable financial results as evidenced by modest leverage and sound profitability. Overall, the company's recent financial results indicate improving profitability and a sound liquidity profile. The Company keeps on following conservative financial policy.