Fitch affirms Norilsk Nickel

Fitch Ratings said it affirmed OJSC MMC Norilsk Nickel's long-term foreign-currency issuer default rating at BBB- and short-term foreign-currency issuer default rating at F3.

The agency said it removed both ratings from Rating Watch negative, where they were placed in February 2011, following a proposal to UC Rusal to acquire 20% of Norilsk Nickel shares for $12.8 billion.

The outlook is stable.

The agency said its concerns were connected with the possible deterioration of Norilsk Nickel's credit metrics if the proposal was approved by UC Rusal. But, the proposal recently was rejected by UC Rusal's board.

The ratings continue to reflect Norilsk Nickel's core strengths, including its position as the world's leading producer of nickel and palladium, as well as being a significant producer of copper and platinum, Fitch said.

The ratings are constrained by the company's predominantly Russian asset base, which exposes it to higher-than-average political, business and regulatory risks, the agency added.

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