Standard & Poor's: Shareholder clashes might affect Nornickel

The international rating agency Standard & Poor's affirmed Norilsk Nickel’s long-term credit rating and its national scale rating at ÂÂÂ- and ruAA+, respectively. The ratings were also taken off the CreditWatch list, with Negative rating outlook.

The fact that the ratings are no longer on the CreditWatch list reflects the official statements the company’s management made to the extent that Norilsk Nickel is not going to suggest buying its shares out from UC RUSAL (which owns a 25% stake in the business) again; the rating agency also feels that the company’s financial performance indicators might still be high given the currently favorable metal prices.

In our view, the remaining disagreements among the shareholders might exert further pressure on the company’s financial policy and strategy and require very close attention on the part of the management. This factor is the main reason the rating outlook is now Negative,’ Standard & Poor's.explains.

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