S&P shifts Eurasian group view to stable

S&P said it revised Eurasian Resources Group’s outlook to stable from negative and affirmed its B- rating.

“The outlook revision reflects our view that capital structure and liquidity risks have diminished. We believe that with rising prices for most commodities, as global economic recovery gathers pace around the world, the risk of ERG's capital structure becoming unsustainable has diminished. Additionally, supported by the launch of the RTR cobalt project, ERG's leverage will decrease in 2020-2021, thanks to higher EBITDA generation,” S&P said in a press release.

The agency said it forecasts ERG’s funds from operations to debt to be at least 12% over the next 12 months, which should help cash generation enough to cover upcoming maturity needs.

However, S&P noted the U.K.'s criminal probe into ERG's now fully owned subsidiary Eurasian Natural Resources Corp., started in 2013, remains a concern.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.