Russian Federation aluminium giant U.C. Rusal announced yesterday that its credit rating was upgraded to AAA status by a top credit rating agency in the People’s Republic of China.
Per the firm, China Chengxin Securities Rating Co., Ltd. boosted Rusal’s credit rating from AA+ and assigned it a Stable outlook due to its improved financial outlook and its stability in the face of recent significant challenges. Rusal says the outlook factored in a number of criteria, including possible changes in business fundamentals.
Among the qualities acknowledged by CCXR in its announcement were Rusal’s economies of scale and its significant vertical integration, both of which translate into lower production costs and a stronger sales network. CCXR also noted Rusal’s emphasis on diversification, which it credits as giving the firm the ability to persevere through intensely adverse conditions. The ratings organization says Rusal’s diversification is also of great benefit because its participation in joint ventures augment its core earnings and cash flow.
Rusal says the improved rating is a testament to the confidence the financial community continues to have in the company and its future. In addition, the firm says the new rating will help shore up its longstanding relationship with the Asian financial market.
The company has been participating in Asian markets since 2017, when it registered its prospectus for bonds denominated in Chinese currency. The prospectus totaled CNY10 billion with a tenor of 7 years. Later that year the firm placed a pair of tranches of the Panda bonds that together totaled CNY1.5 billion.