Summary: OJSC NLMK Mar 12

Standard & Poors, March 2012

Abstract
The rating on vertically integrated Russian steel producer OJSC NLMK (NLMK) reflects Standard & Poor's Ratings Services' assessment of the company's business risk profile as "satisfactory" and its financial risk profile as "intermediate." NLMK's business risk profile benefits from its superior cost position, partial vertical integration into iron ore, and the widediversity of its export markets. Constraining factors are the cyclicality of the global steel sector, lack of vertical integration in coking coal, NLMK's concentrated asset base-- operations in the city of Lipetsk are still the cornerstone of the company's production flow--and the country risk associated with operating in the Russian Federation (foreign currency BBB/Stable/A-3, local currency BBB+/Stable/A-2; Russia national scale 'ruAAA'). We view NLMK's profitability as satisfactory, although it...

Companies mentioned in this report are:
- OJSC NLMK

Action: Review

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This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- OJSC NLMK

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