The credit rating of Polymetal at the level of AA with positive forecast confirmed

National Rating Agency has confirmed the credit rating of Polymetal at the level of AA on a national scale with a positive outlook.

The confirmation of the company’s rating was caused by such factors, as a stable position of one of the industry leaders, including a leading position in increase of the production in 2014, a continued sustainability and expansion of the resource base, maintained, including in the first half of 2014, strong operating and financial results. The company is characterized by an effective approach to cost and capital management, high standards of corporate governance and high level of information transparency, a clear and consistently implemented strategy.

The positive outlook was caused by consistently high operating results of the company, exceeded targets despite the challenging market conditions, a high level of financial stability and liquidity, including, in the first half of 2014, as well as forecasted further preservation of the positive dynamics. It is expected that the company will continue to generate sufficient free cash flow due to the high production results and low cost that has already reduced the net debt by the end of 2014. In addition, the devaluation of the Russian ruble against the US dollar will continue to have a beneficial effect on the company, allowing it to significantly reduce costs.

As risk factors the Agency continues to note the high susceptibility of the company to market risk, associated with fluctuations in the price of precious metals, implementation of which may have an impact on the stability of income, performance and cash flows of the company.