Moody's upgrades Metalloinvest rating to 'Ba1' with a stable outlook

Moscow, Russia - 14 March 2019 - Metalloinvest ("the Company") today announces that Moody's Investors Service ("Moody's") has upgraded the Company's corporate rating to "Ba1" with a stable outlook from "Ba2"/Positive.

According to Moody's statement, Metalloinvest's rating upgrade to "Ba1" reflects the Company's deleveraging, sustainable positive free cash flow, healthy liquidity, proactive debt portfolio management and improved corporate governance.

Moody's analysts highlighted that the Company has a strong position in the iron ore product market due to its low production costs, robust profitability, high share of value-added products (pellets and HBI), exceptional iron ore reserves with a ferrous content of up to 70% in iron ore concentrate, integration in the steel business, diversified customer base, long-term debt maturity profile and a conservative liquidity management.

At the same time, Moody's has upgraded the senior unsecured ratings assigned to the notes issued by Metalloinvest Finance D.A.C. to "Ba1" from "Ba2".

Alexey Voronov, Finance Director of Management Company Metalloinvest, commented:

"In 2018, Moody's was the first agency to revise the outlook on Metalloinvest's rating to positive from stable. This action reflected certain improvements in the Company's operational and financial results, as well as progress on corporate governance. We appreciate Moody's prompt response to the Company's positive results, which this year resulted in the upgrade of Metalloinvest's rating to "Ba1".

Following S&P's rating upgrade of Metalloinvest to "BB+" with a stable outlook in February 2019, the Company's ratings are now at one notch from the investment grade level, according to the assessment of two international credit agencies".

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For more information, please contact:

Artem Lavrischev
Director of Investor Relations and Corporate Ratings

E: ir@metalloinvest.com

T: +7 (495) 981-55-55

Metalloinvest is a leading global iron ore and merchant HBI producer and supplier, and one of the regional producers of high-quality steel. The Company has the world's second-largest measured iron ore reserve base and is one of the lowest-cost iron ore producers.

Metalloinvest is wholly owned by Holding Company USM LLC. Alisher Usmanov is the major beneficiary of Holding Company USM LLC (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (8%).