TASHKENT, Uzbekistan, July 9. Fitch Ratings (a global credit rating agency) has assigned a Long-Term Issuer Default Rating of ‘BB-’ with a Stable Outlook to Uzbekistan’s Navoi Mining and Metallurgical Company (NMMC) and assessed the standalone credit profile at ‘bb’, Trend reports.
According to the agency, NMMC's rating is supported by several key factors. These include the company's large scale as one of the top four gold producers globally, with an expected production of over 3 million ounces in 2024. The Navoi Mining and Metallurgical Company benefits from a low cost-position, which helps maintain high profit margins and low leverage. The long mine life of its largest deposit, Muruntau, also contributes to the strong rating.
The company is also ahead of schedule in completing its $3 billion investment programme, set to increase production capacity by 30 percent by the end of 2024 compared to 2017.
Furthermore, consistent structural reforms in Uzbekistan, which enhance macroeconomic stability, maintain high GDP growth rates, and improve fiscal indicators, also support NMMC's rating.
"The confirmation of NMMC's financial stability by Fitch Ratings is another step in the Company's comprehensive transformation. It highlights our operational efficiency and strong resource base, providing a solid foundation for future growth. The rating not only enhances our credibility in front of partners and investors, but also emphasises our commitment to sustainable and responsible mining. Receiving our second credit rating also opens up new opportunities for cooperation and the introduction of new financial instruments, including the issuance of securities," first Deputy CEO for Transformation at NMMC Eugene Antonov said.
Meanwhile, Fitch Ratings has affirmed Uzbekistan's long-term foreign currency issuer default rating (IDR) at 'BB-' with a Stable Outlook.
Uzbekistan's rating is supported by strong external and fiscal buffers, low sovereign debt, and impressive growth when compared to other countries with a 'BB' credit rating.