The metallurgists win more than oil exporters from the fall of the rouble – Fitch.

Among Russian exporters,the iron and steel companies will benefit more compared with oil and gas ones from the recent depreciation of the rouble, the international rating agency Fitch stated. A limited depreciation will enhance revenues and maintain the creditworthiness of the companies in both sectors, but a rating upgrade is unlikely without evidence that the rate was established at a new, lower, level.

The rouble has fallen by 8% against the U.S. dollar since the beginning of 2014 and by 17% since the end of 2012. The depreciation of the national currency is usually good news for exporters, since it leads to a relative decrease in production costs and administrative expenses in the national currency, while revenues in foreign currencies remain stable, which leads to higher cash flow and profitability. Fitch estimated that for typical Russian metallurgical companies such as Severstal and MMK, a 5% reduction in the rouble should provide 10% -15 %. EBITDA growth. This sensitivity analysis shows that the overall impact on metallurgist exporters may be significant and strengthen their competitiveness in the international market.