23 July 2008

Standard & Poor’s upgrades NLMK to ВВВ-

NLMK is pleased to announce that the international rating agency Standard & Poor’s has upgraded the company's long-term credit rating from BB+ to the investment grade level at BBB- with a stable outlook. The upgrade makes NLMK the first Russian steel company to achieve investment grade status.

Standard and Poor’s, in its press-release published today, highlights NLMK’s favourable credit indicators, including high profitability attributable to the successful implementation of the company’s vertical integration strategy, state-of-the-art production facilities , efficiency and low production costs as well as diversified production and expanded product range, focusing particularly on high value added products.

Ms. Galina Aglyamova, NLMK’s CFO, commented: «The granting of this investment rating is testament to NLMK’s strong financial stability and will allow the company to reduce costs while raising funds to finance the company’s development programme».