S&P upgrades Metalloinvest outlook to Stable, affirms rating at 'BB'

Moscow, Russia - 20 February 2017 - Metalloinvest ('the Company'), today announces that Standard & Poor's Ratings Services ('S&P') has revised its outlook on Metalloinvest from Negative to Stable. S&P also affirmed the Company's 'BB' long-term corporate credit rating.

According to S&P's latest report, the upgrade to a Stable outlook reflects positive iron ore price trends, as well as actions taken by Metalloinvest's management team to deleverage and the Company's high profitability, which remains above the industry average.

S&P's analysts maintained their view that the Company is well positioned in the iron ore product market due to its low production costs, vast iron ore reserves and diverse customer base, as well as the premiums charged for value-added products (such as pellets and HBI/DRI) and the advantages of vertical integration.

S&P also affirmed its 'BB' issue rating on Metalloinvest's USD 1 bn senior unsecured notes due 2020.

# # # #  

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 USM Holdings. Alisher Usmanov is the major beneficiary of USM Holdings (49%), with other major beneficiaries being the companies of Vladimir Skoch (30%) and Farhad Moshiri (10%).