Mechel Announces Obtaining National Credit Rating
Moscow, Russia – November 23, 2022 – Mechel PAO (MOEX: MTLR, NYSE: MTL), one of the leading Russian mining and metals companies, announces that Analytical Credit Rating Agency ACRA assigned Mechel an A(RU) credit rating with a stable outlook.
In its official report, ACRA noted that Mechel PAO’s credit rating is due to the company’s strong market position and a confident evaluation of its business profile, which was in its turn made taking into account the company’s high level of vertical integration, a large share of high value added products in Mechel’s sales structure, as well as high product diversity of its product portfolio. ACRA estimated that the share of the company’s own primary commodity’s share in the prime cost is more that 70%. The company’s degree of self-sufficiency is 125% in coal, 29% in iron ore, 181% in coke and 87% in electricity. The average share of high value added products in 2020-2022 amounted to 31%, while exports provided for 33% of the total revenue.
The stable outlook suggests with a high degree of probability that the rating will remain unchanged over the next 12-18 months.
This is the first time that ACRA has assigned Mechel PAO its credit rating.
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Mechel is an international mining and steel company. Mechel unites producers of coal, iron ore concentrate, steel, rolled products, ferroalloys, heat and electric power. All of its enterprises work in a single production chain, from raw materials to high value-added products.
Some of the information in this press release may contain projections or other forward-looking statements regarding future events or the future financial performance of Mechel, as defined in the safe harbor provisions of the U.S. Private Securities Litigation Reform Act of 1995. We wish to caution you that these statements are only predictions and that actual events or results may differ materially. We do not intend to update these statements. We refer you to the documents Mechel files from time to time with the U.S. Securities and Exchange Commission, including our Form 20-F. These documents contain and identify important factors, including those contained in the section captioned “Risk Factors” and “Cautionary Note Regarding Forward-Looking Statements” in our Form 20-F, that could cause the actual results to differ materially from those contained in our projections or forward-looking statements, including, among others, the achievement of anticipated levels of profitability, growth, cost and synergy of our recent acquisitions, the impact of competitive pricing, the ability to obtain necessary regulatory approvals and licenses, the impact of developments in the Russian economic, political and legal environment, volatility in stock markets or in the price of our shares or ADRs, financial risk management and the impact of general business and global economic conditions.