ACRA assigned a credit rating to the issue of MMK bonds of the zo-2024 series (RU000A105H64)

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AK&M 24 November 2022 17:27

On November 24, 2022, the Analytical Credit Rating Agency assigned the AA+(RU) credit rating to the issue of bonds of the Magnitogorsk Iron and Steel Works Public Joint Stock Company of the zo-2024 series (RU000A105H64). This is stated in the agency's message.      

The issue (volume - $500 million) is the senior unsecured debt of the Public Joint Stock Company Magnitogorsk Iron and Steel Works. Due to the lack of structural and contractual subordination of the issue, ACRA evaluates these bonds as equal in order of execution to other existing and future unsecured and unsubordinated obligations of the company. In accordance with the ACRA methodology, the issue's credit rating is equated to the company's credit rating and is set at AA+(RU).

The credit rating of the company is due to a strong market position and a strong assessment of the business profile, which in turn is determined by a significant share of high-value-added products in the sales structure, as well as a strong product diversification of the company's product portfolio. At the same time, the average assessment of the "Degree of vertical integration" sub-factor constrains the assessment of MMK's business profile, while a very high assessment of the financial risk profile supports the level of the credit rating.