Polyus says goodbye to Fitch
Fitch has withdrawn the rating of the largest Russian gold mining company Polus of the Kerimov family "for commercial reasons". According to the Kommersant’s information, the company didn’t accept the low rating BB- with a negative outlook, further decrease threatened with the fact that the National Pension Fund’s money wouldn’t be able to be invested in the company’s bonds. Analysts added that since the consolidation of Polyus and its buyback, due to which the major shareholder gained first and foremost, investors’ attitude to the company became more cautious.
On Friday, Fitch Ratings affirmed its rating of gold mining company Polyus (controlled by Suleiman Kerimov's son Said) at BB- with a negative outlook. Among the key factors that influenced the rating, Fitch notes substantial growth in debt burden and weakening of solvency if the company will hold a full buyback for $3.44 billion. The buyback was completed on May 27 the results haven’t yet been announced, but the main transaction has already taken place: on March 11, Polyus reported that it bought from the Kerimov family about 32% of the shares for 243 billion rubles ($3.42 billion). Under the baseline scenario of Fitch, the ratio of the net debt of Polyus to EBITDAR (EBITDA net of rental costs and restructuring) will exceed 3 in 2017 "as compared with historical levels of less1". In Fitch's view, "the absolute levels of the debt" of Polyus will remain "elevated" until 2018, when launch of the Natalka project should give an increase of 15-20% of the annual volume of the production (1.76 million ounces in 2015).
