  We have analysed the XMM-Newton spectra of SS 433 using a standard model of
adiabatically and radiatively cooling X-ray jets. The multi-temperature thermal
jet model reproduces well the strongest observed emission line fluxes. The
thermal model alone can not reproduce the continuum radiation in the XMM
spectral range, the fluorescent iron line and some broad spectral features.
Using the thermal jet-plus-reflection model, we find a notable contribution of
ionized reflection to the spectrum in the energy range from ~3 to 12 keV. The
reflecting surface is highly ionized (xi ~300), the illuminating radiation
spectrum is flat and probably strongly absorbed. We conclude that the reflected
spectrum is an evidence of the supercritical disc funnel, where the
illuminating radiation comes from deeper funnel regions, to be further
reflected in the outer visible funnel walls (r >~2*10^11 cm). We have not found
any evidences of reflection in the soft 0.8-2 keV energy range, instead, a soft
excess is detected, that does not depend on the thermal jet model details. This
soft component might prove to be the direct radiation of the visible funnel
wall. It is represented here either as black body radiation with the
temperature of ~0.1 keV and luminosity of L_bb ~3*10^37 erg/s, or with a
multicolour funnel (MCF) model. The soft spectral component has about the same
parameters as those found in ULXs.
