TASHKENT, Uzbekistan, July 11. International credit rating agency Fitch Ratings has upgraded the Long-Term Issuer Default Rating (IDR) of JSC Almalyk Mining and Metallurgical Complex (Almalyk) to ‘BB’ from ‘BB-’, Trend reports.
The rating upgrade reflects Almalyk’s strategic importance to the government of Uzbekistan, which holds a 98 percent ownership stake in the company. Fitch considers the government's “willingness and capacity to support” as Strong, noting Almalyk’s vital role in the national economy and the material support it has received to date.
The agency also assesses “incentives to support” as Strong, highlighting the company’s position as Uzbekistan’s sole copper producer, second-largest taxpayer, and second-largest exporter. Moreover, Almalyk is amplifying its dependence on extrinsic capital, especially for the Yoshlik mining and metallurgical complex, which is anticipated to be underwritten by an international banking consortium.
Fitch assigned Almalyk a Standalone Credit Profile (SCP) of ‘b+’, while the Government-Related Entity (GRE) support score of 30/60 leads to a rating that is equalized with the sovereign.
However, the company’s ESG Relevance Score for Financial Transparency was rated ‘4’, reflecting the limited history of audited financial statements and delays in public disclosures. According to Fitch, this factor has a negative impact on Almalyk’s credit profile and is relevant to its overall rating assessment.
