S&P affirms Kazakh mining company’s ratings

S&P affirms Kazakh mining company’s ratings

Baku, Azerbaijan, May 14
By Elena Kosolapova - Trend:

Standard & Poor's Ratings Services affirmed its 'B' long-term and 'B' short-term corporate credit ratings on Kazakhstan-based mining group Eurasian Natural Resources Corporation Ltd (ENRC), the rating agency reported on May 14. S&P removed the ratings from CreditWatch, where originally placed them with negative implications on April 30, 2013. The outlook is negative.

In the fourth quarter of 2013, ENRC completed its leveraged buyout and delisted from the London Stock Exchange and Kazakh Stock Exchange. S&P understands from the management that, as a result of this buyout, ENRC's adjusted total debt has increased substantially to about $8.0 billion as of Dec. 31, 2013. This compares with adjusted $6.1 billion as of one year earlier. The debt increase is largely related to a $1.7 billion acquisition financing that the company received from Russian state-owned bank VTB. VTB and Sberbank are the lenders of the bulk of ENRC's debt.

"We continue to view ENRC's liquidity as "less than adequate," given the high debt maturities from the fourth quarter of 2015. We also view ENRC's access to funding as constrained by risks related to an ongoing Serious Fraud Office investigation," the agency said.

S&P understands from the management that the outcome of the investigation is still unclear and that the investigation will likely be protracted, but that it now largely focuses on past acquisitions in Africa. For this reason, as well as the limited track record of the new management appointed in January this year, the agency continues to assess ENRC's governance as "weak."

The ratings reflect ENRC's stand-alone credit quality, although S&P assesses the company as a government-related entity.

The negative outlook reflects the probability of a downgrade over the next six months if management is not able to address ENRC's currently high leverage. This will depend on new information the agency expects to receive from management over the next three to six months regarding ENRC's debt-reduction strategy.

Any perceived weakening of bank support from Sberbank or VTB would also result in rating downside. S&P might also lower the rating if the final audited IFRS-based report for fiscal-year 2013 includes material credit-negative factors that are as yet undisclosed. The agency will also take into account developments related to the Serious Fraud Office investigation.

Azerbaijan discloses number of coronavirus tests
Azerbaijan discloses number of coronavirus tests
Azerbaijan confirms 257 new COVID-19 cases (UPDATE)
Azerbaijan confirms 257 new COVID-19 cases (UPDATE)
Azerbaijan confirms 257 new COVID-19 cases
Azerbaijan confirms 257 new COVID-19 cases
Loading Bars
Latest
National Guard troops sent to Atlanta; city invokes curfew
Crew Dragon in orbit after historic launch
Federal officer killed guarding courthouse near protest
COVID-19 cases in Israel surpass 17,000
WHO reports single-day increase in coronavirus cases by over 116,000
Moscow registers 69 coronavirus-related deaths in past 24 hours
Coronavirus cases surpass 6 mln globally
Spain's daily coronavirus death toll drops to a handful
Two gunmen killed in counterterrorism operation in Ingushetia
Azerbaijan increases import of cars from Turkey
Turkey's daily coronavirus cases remain below 1,000 with 26 new deaths
Italy records 111 new coronavirus deaths, 416 new cases
Azerbaijan discloses number of coronavirus tests
EU urges U.S. to reconsider decision to cut ties with WHO
Britain at a very dangerous moment in the pandemic, health official says
COVID-19 deaths in Netherlands rise by 20
Magnitude-5.4 earthquake rattles southern Philippines
Iranian minister announces number of renewable energy power plants under construction
Azerbaijan Micro-finance Association supports female entrepreneurs affected by COVID-19
2,355 new COVID-19 infections detected in Qatar, total 55,262
Iran's Aghajari Oil & Gas Production Company introduces LBV technology
Azerbaijan confirms 257 new COVID-19 cases
Iran eyes to review gas export contracts
Turkmenistan decreases import of ready-made clothing from Turkey
Iran's stock market grows with inflation
Turkey's export of steel to Uzbekistan down by over half
Iran gov't to transfer shares of 20 companies to Social Security Organization
Data on cargo transshipment through Turkish port of Aliaga disclosed
Kazakhstan reduces import of cars from Turkey
Kazakhstan's import of Turkish defense products heavily down
Japan supports sustainable development of Uzbekistan
Russia’s Asian-Pacific Bank to supply its silver bullion to Kazakhstan
Volume of wheat purchased in Iran's Fars province increases
Cargo deliveries from Georgia to Turkey climb
Kazakhstan's oil extracting company opens tender for equipment overhaul
Revenue of Kazakhstan’s largest oil pipeline company plummets in 1Q2020
Turkish ministry discloses number of oil exploration wells drilled in 2019
Uzbek-Korean JV opens tender for procurement of MTR for pumps
Georgia reports 11 new coronavirus cases
Plane of Kazakhstan's private airline bursts into fire
Kazakhstan's KazTransOil to allocate entire income to pay dividends
Iranian Offshore Oil Company repairs floating processing terminal
Iran's export transportation fees tripled
Iran to sell domestically produced cars via profit-sharing scheme, lottery
Yandex registers as taxpayer in Uzbekistan
Largest in CIS solar plant commissioned in Kazakhstan's Akmola
Georgia ranks third in gas prices
Iran investing heavily in expanding national internet network
Kazakhstan adopts law on imported goods traceability mechanism
Kazakhstan’s uranium fields exploring venture to buy filters via tender
Iran cuts import of electrical goods from Turkey
Azerbaijan Mikro-Kredit NBCO's assets marginally up
Iran spends less foreign currency on car manufacturing
Iran discloses COVID-19 statistics for May 30
Azerbaijan's NBCO faces heavy drop in profit in 2019
Governor of Central Bank of Iran promises to gradually get rid of chronic inflation
Azerbaijan may introduce COVID-19 passport after resuming flights
Rouhani: It is not possible to return to pre-coronavirus conditions soon
Value of foreign trade via customs of Iran's Mazandaran Province increases
Leading Azerbaijani bank reduces payment card fees during COVID-19 pandemic
Azerbaijani oil grows in price
Azerbaijan's Azeltech eyes testing new drones
USAID interested in expanding co-op with Uzbekistan
Cargo transportation from Turkmenistan to Turkey slips
FINСA Azerbaijan NBCO's total assets triple
Turkish ministry bans engineering company from participating in ETI MADEN I.G.M.'s tenders
Iran's Esfahan Oil Refining Company announces savings due to import substitution
First Free Economic Zone of Uzbekistan talks its achievements
Georgian National Bank reveals official exchange rate of lari in April
Iran's Khodro cancels prepayment for its lottery sales
Sales value of National Iranian Copper Industry Company increases
Volume of cargo transshipment from Germany via Turkish ports revealed
Uzbekistan reports rise in coronavirus cases
Share of population under absolute poverty line slightly decreases in Georgia
Armenia violates ceasefire with Azerbaijan 29 times
Iran Energy Exchange announces products to be on sale May 30
Georgia's import of electrical goods from Turkey shrinks
Uzbekistan to construct BMX track
Turkey announces volume of cargo transshipped via its ports from Italy
Iranian airlines to receive coronavirus-related relief loan in June
Cargo transshipment volumes from Belgium via Turkish ports disclosed
Iranian currency rates for May 30
Armenian architect admits: Previously, Armenians didn't live in Yerevan (VIDEO)
Uzbek holding to assemble agricultural machinery in Kazakhstan
Gazprom says price of natural gas for Georgia to remain unchanged
FAO designs projects aimed at overcoming COVID-19 consequences in Azerbaijan
Minneapolis imposes mandatory curfew amid unrest
S. Africa reports record daily increase in COVID-19 cases
China reports four new coronavirus cases for May 29
Hundreds in New York protest over George Floyd's death
Brazilian Economy Ministry predicts greater GDP decline in second quarter
5.2-magnitude quake hits Whitianga of New Zealand
Number of COVID-2019 cases across globe up by over 107,000 in past day
Trump says terminating U.S. relationship with World Health Organization over virus
Brazil sets new record for daily COVID-19 infections
Singapore reports 611 COVID-19 cases
Turkey reports 1,182 COVID-19 cases over past 24 hours
Bulgaria to end quarantine on travel from most of EU
Iraq records highest daily new COVID-19 cases
Azerbaijan expected to resume domestic flights in 10 days
All news