Fitch cuts Kazatomprom outlook to negative

Fitch Ratings said it revised JSC National Atomic Co. Kazatomprom's outlook to negative from stable.

The agency also said it affirmed its long-term foreign-currency issuer default rating at BBB-, short-term foreign-currency issuer default rating at F3 and foreign-currency senior unsecured rating of BBB-.

The outlook revision reflects concerns about Kazatomprom's increasing gross leverage, which has reached the upper range for an investment-grade rating of 1.5x to 2.5x on a sustained basis, Fitch said.

The ratings reflect its position as one of the leading uranium producers worldwide, the agency said.

The ratings also factor in the limited diversification of Kazatomprom's business profile and exposure to uranium price volatility, since about half of Kazatomprom's uranium products are sold at spot prices, Fitch said.

The company's exposure to uranium price volatility could be mitigated by the expected vertical integration and shift to higher value-added products and services, the agency added.

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