S&P might lift Polyus

S&P said it placed the BB- issuer credit ratings on Polyus Gold International Ltd. and its core subsidiary Polyus PJSC on CreditWatch with positive implications.

At the same time, the agency placed the BB- issue ratings on the group's senior unsecured debt on CreditWatch positive.

On June 5, Polyus announced its plan to conduct a secondary public offering (SPO) of at least 7% of its shares within the next few months. S&P said it thinks that this transaction, when completed, would reduce the risk of high special dividends or share buybacks, which the agency currently factors into the rating.

“At this stage, the timing and the pricing of the SPO remain unclear, but we assume that the offering will be completed within the next two months. Based on its current market share price, the SPO could raise about $700 million, which we assume might be used by Polyus and its major shareholders for deleveraging,” S&P said in a news release.

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