S&P lifts KGHM view to stable

Standard & Poor’s said it revised the outlook on KGHM International Ltd. to stable from negative.

The agency also said it affirmed the BB- long-term corporate credit and senior unsecured debt ratings.

The 3 recovery rating on the senior unsecured notes is unchanged and indicates 50% to 70% expected default recovery.

The outlook revision primarily reflects a view that KGHM International is strategically important to its ultimate parent, KGHMI Polska Miedz SA following its direct financial support to the company and an understanding that this will continue, particularly with respect to Sierra Gorda-related capital requirements, S&P said.

The ratings reflect the company’s weak business risk profile and highly leveraged financial risk profile, the agency said.

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