NLMK is pleased to announce that the international rating agency Moody’ has upgraded the company long term credit rating from Ba1 to the investment grade level at Baa3. The outlook on the Company rating remains stable.

Moody in a press-release published today, highlights the excellence of NLMK resilient business model which has demonstrated sustainable operational and financial performance despite recent market downturn. Moody expects that NLMK will maintain its highly competitive production costs globally, benefiting from its efficient vertical integration into iron ore, coke and scrap. In its press-release, Moody notes the positive impact of NLMK acquisition of the rolling assets of SIF SA its JV with Duferco Group on earnings and the stability of its operations.

This acquisition, according to the rating agency view, will enhance NLMK’s business profile, providing the Group with better operational diversity and additional rolling capacity. Moody’s believes that this will aid creation of a captive demand for increased steel volumes to be coming on stream in 2011 as a result of the commissioning of a new 3.4 million tonnes per annum blast furnace in Lipetsk, Russia.

Ms Galina Aglyamova NLMK’s CFO commented that “We welcome NLMK’s credit rating upgrade by Moody’s. This is the third investment level credit rating to be awarded to our Company. This decision reflects the success of NLMK’s consistent efforts aimed at improving our financial position and the quality of business in line with our sustainable growth strategy.”