S&P lowers Polyus Gold to BB-

Standard & Poor's said it lowered its long-term corporate credit rating on Polyus Gold International Ltd. to BB- from BB+.

The outlook is stable.

The rating was removed from CreditWatch, where it was placed with negative implications on Nov. 12, 2015.

S&P said the downgrade follows the acquisition of Polyus by Wandle Holdings Ltd., a financial vehicle ultimately controlled by the Suleyman Kerimov Foundation and Said Kerimov, and also reflects the subsequent changes in Polyus' capital structure.

In November 2015, Wandle completed the acquisition of 60% of Polyus' shares. Polyus then delisted its shares from the London Stock Exchange.

The subsidiary OJSC Polyus Gold remained listed on the Moscow Exchange (free float of 4.7%).

The acquisition imparted a value of $9.1 billion to Polyus.

S&P understands that the acquisition was funded by a $5.5 billion bridge facility, including some short-term tranches. As of Dec. 31, 2014, Wandle had existing short-term debt of about $3 billion, which was secured against its previous 40% stake in Polyus.

The agency has limited visibility on debt structure at the parent company post the completion of the acquisition.

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