Fitch rates Norilsk Nickel notes BBB-

Fitch Ratings said it assigned a BBB- senior unsecured debt rating and a F3 short-term debt rating to Russia-based OJSC MMC Norilsk Nickel and a BBB- rating to its existing $500 million five-year senior notes.

The outlook is stable, reflecting Fitch's expectation that Norilsk Nickel will maintain a satisfactory financial and business profile, despite the cyclical nature of the industry.

The ratings reflect Norilsk Nickel's world-leading market positions in primary nickel production; a diversified metal commodity mix underpinned by substantial, high quality, low-cost, long-life mine reserves; a growth strategy focused on core operations; a vertically integrated business model and self-sufficiency in energy supply, the agency said.

Fitch noted, however, that the company has a concentrated ownership structure and that its production assets are concentrated in remote areas of Russia characterized by a permafrost environment, presenting certain logistics and transportation challenges.

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