Moody's affirms Norilsk Nickel

Moody's Investors Service said it affirmed the Baa2 corporate family ratings and Aaa.ru national scale rating of OJSC MMC Norilsk Nickel.

The outlook is stable.

The action follows the company's C$6.8 billion cash offer to acquire LionOre, which could achieve a broader geographical diversification of operations and is consistent with Norilsk's strategy to maintain its leadership in production of nickel and its competitive cost position, the agency said.

Moody's said, however, that the Baa2 rating on Norilsk Nickel's $500 million 2009 unsecured notes was assigned assuming the reliance on secured facilities will remain very limited going forward. Moody's said it would likely reassess the unsecured notes rating should Norilsk incur secured debt to fund the acquisition.

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