S&P: Sual remains on positive watch

Standard & Poor's said its BB- long-term corporate credit rating and ruAA- Russia national-scale rating on Sual International Ltd. remains on CreditWatch with positive implications on news of the completion of the company's combination with Rusal (not rated) and with the assets of Glencore International AG (BBB-/stable/A-3). The ratings were placed on CreditWatch in October.

The new entity, United Company Rusal, will be the world's largest aluminum company, S&P said. An upgrade of Sual will depend on the company's strategy and financial policy, financial risk profile, the degree of Sual's integration within the new entity and the status of Sual's creditors relative to other creditors of the combination, the agency said.

If the new entity has substantial leverage, S&P said, this may limit the rating upside potential for Sual. The agency said it believes the combined group may have ambitious growth plans and will need to focus on how to reconcile these plans with initial debt levels.

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