Standard & Poor’s downgrades Kazakh Metallurgical Corporation’s credit rating
Azerbaijan, Baku, Feb. 16 / Trend E. Kosolapova/
International rating agency Standard & Poor's reported about the decrease of long-term counterparty credit rating of Kazakh Eurasian Natural Resources Corporation PLC (ENRC) from 'BB' to 'BB-', Novosti-Kazakhstan reported on Thursday referring to the agency.
"The outlooks on the ratings are negative," the report said.
ENRC short-term rating is confirmed at 'B.'
"Rating downgrade reflects our expectation that ENRC debt will increase significantly in connection with planned purchase of assets worth $1.25 billion in Congo, as well as in connection with very ambitious capital expenditure program for 2012-2013," the agency said.
Eurasian Natural Resources Corporation (ENRC) is one of the leading diversified natural resources groups with integrated mining, processing, energy, logistical and marketing operations. ENRC production assets are largely located in Kazakhstan. Moreover, the company operates in China, Russia, Brazil and Africa (the Democratic Republic of Congo, Zambia, Mozambique and South Africa). ENRC is the world's largest producer of ferrochrome on a chrome content basis and one of the world's significant iron ore and alumina producers.