S&P pulls GeoProMining from watch

S&P said it affirmed GeoProMining Investment (CYP) Ltd.’s ratings, including its B+ issuer rating, and removed them from CreditWatch with negative implications where they were placed on Dec. 15.

The affirmation and watch removal consider the decreased risk of a war between Azerbaijan and Armenia and that GeoProMining can keep operating at about half of the Zod mine, the agency said.

The outlook is negative. “The negative outlook reflects the risk of a downgrade in the next 12-18 months in case the company is unable to recover EBITDA to at least $100 million and FFO to debt to at least 20%. In our base case, we assume that the company will maintain production at roughly half of the Zod mine, generating positive cash flows from the asset this year and successfully ramp up the Verkhne Menkeche plant on time and budget,” S&P said in a press release.

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