Metallurgical of China : International Rating Institution Announces Promotion of MCC’s International Credit Rating

On July 15th, Standard & Poor's, an international credit rating agency, announced that MCC's international credit rating has been promoted from BBB- to BBB. This is the highest rating given by Standard & Poor's since the MCC Group made an international credit rating in 2011.

It is considered by Standard & Poor's that the MCC has successfully transformed itself into the non-metallurgical business field while guaranteeing its position as a representative national team in metallurgical construction and emerging industries, with comprehensive pipe galleries and sponge city technology gradually forming its new business growth points; Standard & Poor's fully affirmed the steady development in MCC's ways of thinking including 'focusing MCC's main businesses and constructing a better MCC', and considered that focusing on the quality of enterprise development is more important than pursuing scale enlargement; Standard & Poor's spoke highly of MCC's measures to strengthen its cash flow management in recent years, sustaining the cash flow with a large amount of net inflow for two consecutive years in operating activities, as well as the Group's active reduction of liabilities and promotion of financial structure optimization. It is believed by Standard & Poor's that MCC will develop better in the future under the guidance of its distinct strategic positioning, including being the 'national team of metallurgical construction, the main force of capital construction and the pacesetter of emerging industries'.

The promotion of MCC's international credit rating is advantageous for the Group to reduce its overseas financing costs, strengthen its overseas project acquisition capability, and promote its image in the international capital market.