OREANDA-NEWS. Fitch Ratings has today upgraded Magnitogorsk Iron and Steel Works's ("MMK") Issuer Default and senior unsecured ratings to "BB" from "BB-" (BB minus). The Outlook on the Issuer Default rating remains Stable.

"The rating upgrade reflects the modernisation of MMK's plant resulting in greater operational efficiency, sustainable low leverage and strong liquidity, and improved transparency regarding ownership of the company," says Peter Archbold, Director of Fitch's EMEA Industrials team.

In contrast to a majority of its domestic peers, at present MMK has limited self-sufficiency in key steel-making raw materials. Fitch, however, recognises the company's good bargaining position relative to certain key suppliers.