Moody's понизило рейтинговые оценки EURASIAN NATURAL RESOURCES CORPORATION PLC (ENRC, Соединенное Королевство), прогноз "Негативный"

/Moody's Investors Service, Лондон, 31.01.12, перевод и заголовок KASE/ - Рейтинговое агентство Moody's Investors Service сегодня понизило корпоративный рейтинг (CFR) группы ENRC PLC с Ba2 до Ba3. Одновременно, Moody's понизило предварительный рейтинг программы среднесрочных Еврооблигаций ENRC на сумму 3 млрд. долл. США до (P)Ba3/LGD4. Кроме того, Moody's изменило прогноз по рейтингам со стабильного на негативный. Ниже приводится оригинальный текст сообщения Moody's на английском языке. London, 31 January 2012 - Moody's Investors Service has today downgraded ENRC PLC's corporate family rating (CFR) to Ba3 from Ba2. Concurrently, Moody's has downgraded the provisional rating on ENRC's USD3 billion euro medium-term note (EMTN) programme to (P)Ba3/LGD4. In addition, Moody's has changed to negative from stable the outlook on the ratings. Downgrades: Issuer: Eurasian Natural Resources Corporation Plc Probability of Default Rating, Downgraded to Ba3 from Ba2 Corporate Family Rating, Downgraded to Ba3 from Ba2 Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba3; LGD4 - 57 from (P)Ba2; LGD4 - 50 Outlook Actions: Issuer: Eurasian Natural Resources Corporation Plc Outlook, Changed To Negative From Stable Moody's also maintains the following rating on Eurasian Natural Resources Corporation Plc: BACKED Other Short Term (foreign currency) ratings of (P)NP RATINGS RATIONALE "Today's rating action reflects ENRC's more aggressive acquisition and financial policy, which is likely to lead to a deterioration in the issuer's financial profile, whilst putting pressure on liquidity, due to the large cash outflows related to aggressive M&A activity, and the substantial capital expenditure plan" says Gianmarco Migliavacca, a Moody's Vice President - Senior Analyst and lead analyst for ENRC. Moody's expects that the forthcoming acquisitions will be almost entirely debt funded. As a result, the likelihood that the group's debt/EBITDA ratio will approach, or even exceed, 2.5x has sharply increased, especially considering that the largest acquisition announced, in the Democratic Republic of Congo (DRC), is expected to start generating positive financial results only from mid/late 2013, and subject to further capital expenditures which ENRC needs to incur after closing, to bring the acquired assets to productivity. Specifically, ENRC has recently announced an agreement with First Quantum Minerals ('FQM') to acquire its residual mining assets in the Democratic Republic of Congo (DRC) for a total consideration of USD1.25 billion. The deal is expected to close by the end of February. Upon completion of the transaction, all existing residual claims in respect of the Kolwezi tailings project and the Frontier and Lonshi mines will be acquired by ENRC and, according to ENRC and FQM, all current legal disputes between the two parties will be settled, Furthermore, ENRC has indicated that it is reviewing its options to secure access to the Frontier and Lonshi mines, as Moody's understands that the licences over both mines will not be acquired in the transaction with FQM, as both licences are currently owned by a Hong Kong based company whose ownership remains undisclosed. At the same time, Moody's understands that the issuer maintains its intention to finalise the purchase of the residual 75% stake it does not already own in Kazakh coal producer Shubarkol, for a consideration of USD600 million plus assumed debt of approximately USD50m. This is a related party transaction as the residual 75% stake is currently owned by the three founding shareholders of ENRC. This deal is therefore subject to the approval of the independent shareholders, which Moody's expects will be granted at a next shareholders' meeting this year. Moody's considers that the pressure exerted on ENRC's financial profile and liquidity as a result of the group's expansion strategy will be compounded by the challenging macroeconomic environment expected in 2012, which Moody's believes will translate into weaker operating and financial performances for ENRC compared to 2011. On a more positive note, Moody's recognises (i) ENRC's good access to high- grade and long-reserve-life mining assets in Kazakhstan (more than 35 years of reserves at current production levels), which provide the group with good access to the Chinese and Eurasian markets; (ii) its favourable cost structure as a result of its high-quality mining assets, as well as benefits to the group of being a vertically integrated miner (self-sufficiency in metals, downstream integration in smelting and refining as well as the access to captive power and transportation assets); and (iii) ENRC's still solid balance-sheet structure, which benefited from the strong financial performance exhibited by the group in 2010 and 2011 to date, supported by the favourable commodity price environment prevailing in the past two years. Furthermore, Moody's positively notes that the closing of the forthcoming acquisitions will add high quality coal copper and cobalt mining assets, and especially the copper assets in the DRC, which will start to positively contribute to the issuer's financial performance once fully developed according to plan before end of 2013. ENRC's liquidity, which as of September 2011 was satisfactory, would become insufficient to address all the major expected outflows related to the group's large capex and acquisition plans for the next 12-18 months, as well the other outflows related to dividends, debt repayments and working capital. In particular, Moody's expects that ENRC will incur more than USD3 billion of capex over the next 12- 18 months, as well as finalise acquisitions worth nearly USD2 billion (i.e. excluding agreed acquisition related deferred payments) over the same period. The USD1.2 billion of cash that ENRC has on the balance sheet as of September 2011, coupled with USD1.5 billion of undrawn banking facilities at the same date (a USD500 million revolving credit facility and a USD1 billion term loan signed on 30th September 2011 with Russian Commercial Bank (Cyprus) Limited, would not be adequate to address all these outflows. However, Moody's expects that ENRC will be able to put in place the required funding needed to address its planned liquidity needs, maintaining an adequate headroom at all times. The negative outlook reflects the substantial execution risk attached to the planned growth strategy in countries characterized by high political risk, namely the Democratic Republic of Congo, where ENRC's exposure will materially increase following the recently announced deal with FQM. The change in outlook also reflects Moody's recurring concerns over ENRC's corporate governance, whereas any possible negative evolution, as a further downside effect, could make much more difficult for the issuer to secure external funding - at least with Western based lenders - whilst at the same time increasing the risk of over-exposure to its Kazakh and Russian based relationship banks. WHAT COULD CHANGE THE RATING UP/DOWN Given today's rating action, Moody's currently considers positive rating actions to be unlikely in the near future. However, in the absence of any material outstanding issue concerning corporate governance, positive pressure could build over time if the group were able to successfully execute its ambitious growth strategy whilst maintaining comfortable liquidity headroom and maintaining strong debt and cash flow metrics. Such metrics would need to be in line with the levels achieved as of June 2011, including a debt/EBITDA ratio sustainably below 2.0x. Conversely, Moody's would consider downgrading the rating if there were a material deterioration in ENRC's liquidity profile as a result of a sharp decline in the group's operating cash flow generation and/or a more aggressive financial policy. Such a deterioration would be reflected by less robust credit metrics, including debt/EBITDA in excess of 2.5x on a sustained basis. Furthermore, negative pressure could be exerted on the rating by negative developments in the group's corporate governance. PRINCIPAL METHODOLOGY The principal methodology used in rating ENRC plc was the Global Mining Industry Methodology published in May 2009. Other methodologies used include Loss Given Default for Speculative-Grade Non-Financial Companies in the U.S., Canada and EMEA published in June 2009. Please see the Credit Policy page on www.moodys.com for a copy of these methodologies. Eurasian Natural Resources Corporation Plc, headquartered in London, is a vertically integrated Kazakh mining company primarily focused on the production of ferroalloys and iron ore (45% and 29% of group revenues respectively). ENRC is the world's largest ferrochrome producer (by chrome content) and one of the leading global exporters of iron ore by volume. ENRC is also the world's ninth- largest supplier of traded alumina by volume (14% of group revenues). In addition to the group's core mining activities, ENRC owns and operates energy assets (it is one of Kazakhstan's largest electricity providers), as well as logistics assets -- partly used for captive purposes given that the group is self-sufficient in electricity and logistics in Kazakhstan. ENRC generated revenues of USD6.605 billion and reported an underlying EBITDA of USD3.194 billion for the fiscal year ended 31 December 2010. Gianmarco Migliavacca Vice President - Senior Analyst Corporate Finance Group Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Olivier Beroud Managing Director Corporate Finance Group JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 Releasing Office: Moody's Investors Service Ltd. One Canada Square Canary Wharf London E14 5FA United Kingdom JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2012-02-02]