TASHKENT, Uzbekistan, June 5. The international rating agency S&P Global forecasts that Navoi Mining and Metallurgical Company” JSC (NMMC), Uzbekistan’s largest gold producer and a fully state-owned company, is highly likely to receive extraordinary government support due to its strategic importance and strong ties with the state, Trend reports.
S&P highlights NMMC’s critical role in the national economy, owning all major gold mines and contributing over 16.7 percent of Uzbekistan’s tax revenue in 2023 through royalties, income taxes, and dividend payments. The government’s full ownership and significant representation on NMMC’s supervisory board further strengthen this relationship.
Even with this backing, the agency warns that government meddling could throw a wrench in the works, especially as Uzbekistan speeds up its economic reforms and looks to rake in more funds from state-owned enterprises. The rating agency also points out that the safeguards to protect NMMC from unfavorable government moves are few and far between, which could spell trouble during financially rocky times.
Currently, NMMC’s standalone credit profile (SACP) is rated ‘bb+’, but its overall rating is capped at ‘BB-’, in line with Uzbekistan’s sovereign rating. The agency states that any major fiscal demands from the government could impact the company’s financial stability, as no regulatory or contractual safeguards exist to prevent such interventions.
S&P’s outlook on NMMC mirrors that of Uzbekistan, with potential for an upgrade if the country’s sovereign rating improves and a downgrade if economic or operational setbacks increase financial pressures on the company.
S&P Global is a leading provider of financial information and analytics, founded in 1860. It is best known for its credit ratings, through S&P Global Ratings, and offers data, benchmarks, and market intelligence via its other divisions. Headquartered in New York, it serves clients globally across various industries.
