Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing, Sinosure to provide the insurance
Eurasian Resources Group upgraded to ‘B’ by S&P following stronger results; outlook positive
Eurasian Resources Group (“ERG” or “the Group”), a leading diversified natural resources group, has received an uptick in its long-term credit rating to a ‘B’ and a ‘positive outlook’ assessment from Standard & Poor’s on the basis of its robust performance and operations.
The leading credit ratings agency highlighted strong operating and financial results in 2017 and the upcoming launch of the Metalkol Roan Tailings Reclamation (RTR) project as the main reasons behind the upward revision. Reaping the benefits of an increase in ferrochrome prices and favourable prices for other metal commodities and maintaining moderate capital expenditures, ERG outperformed S&P’s 2017 forecasts. Based upon new forecasts S&P expects that ERG’s results will stay on an ascending track for the next two years.
The credit ratings agency also positively revised its assessment of ERG’s management and governance, noting that the team steering the strong results is financially prudent and proactive.
Alexander Machkevitch, Chairman of the Board of Directors at ERG, said: “In line with our continued focus on the efficiency of ERG’s business, the credit rating upgrade by S&P will enable the Group to further develop its world-leading operations in all the key regions. ERG’s team has done tremendous work and achieved strong financial results. Given the favourable outlook for the commodities market, we believe we are well-placed to strengthen our position as a global market leader.”