Rating agency Fitch Ratings has changed the Outlook for Magnitogorsk Steel OJSC's ("MMK") to positive from stable and affirmed Long-Term Issuer Default Rating at BB.
According to Fitch Ratings, the revision of MMK’s Outlook to positive from stable in part reflects improvements in MMK raw material self-sufficiency levels in recent years together with expected additional developments in this respect over the next 3-4 years.
The Outlook change also reflects Fitch’s favourable view of MMK’s business strategy of gradual organic growth and a focus on higher value-added product segments. Typical of this are the development of a new plate mill to supply the oil and gas industry, and of a new Turkish steel mill joint venture. Together these measures will improve the company’s geographic and product diversification, the agency concluded.