Annual report 2007 - Magnitogorsk Iron & Steel Works ...

In accordance with its borrowing policy in 2007:
• The Company, on September 14, signed a loan agreement with three leading international banks in the
amount of the USD equivalent of EURO 365,055,280 for the financing of the supply of equipment for the 5,000
mm Plate Mill 5000 and slab CCM equipment with coverage from HERMES Export Credit Agency, Germany.
• for MMK’s strategic partner company, Profit, a scrap supplier, as part of a program for building up scrap stocks
and expanding MMK’s raw materials supply base, a USD 98.5 million syndicated facility was extended for a term
of one year, and a new, 2-year, USD 109 million facility was provided by a syndicate of banks secured by the
assignment of MMK’s proceeds;
• financing was arranged for a housing program for MMK’s employees in the amount of USD 27 million.
Credit Ratings
The high credibility level of MMK was confirmed by three leading rating agencies, which reconfirmed the
positive valuation of the Company’s ability and readiness to perform its financial obligations in full and in a timely
manner.
As of
31.12.2007
Moody’s Investors
Service Inc.
Standard & Poor’s
International Services
Inc.
Fitch Ratings Ltd
Rating Outlook Rating Outlook Rating Outlook
Issuer rating Ba2 stable BВ positive BB stable
USD 300 million
Eurobonds/2008
rating
Russian scale
rating
ANNUAL REPORT OPEN JOINT-STOCK COMPANY MAGNITOGORSK IRON & STEEL WORKS
Ba2 stable BВ positive BB stable
Aa2.ru RuАA
SEASON 2007
MMK’s status as a bona fide and reliable borrower, coupled with its growing capitalization and a declining debt/
equity ratio, creates a bigger potential for using borrowings to expand MMK’s operations, consolidate its positions
on the fast growing emerging markets and implement its strategic plans.