Moody's rates Uranium One notes Ba3

Moody's Investors Service said it assigned a Ba3 corporate family rating, a Ba3-PD probability of default rating and an SGL-3 speculative grade liquidity rating to Uranium One Inc. and a Ba3 (LGD3, 42%) rating to Uranium One Investments Inc.'s proposed $350 million senior secured notes issue. The outlook is stable.

Moody's regards Uranium One as a government-related issuer. The agency said the corporate family rating incorporates two notches of uplift from its standalone credit quality due to the credit quality of the Russian government (Baa1/stable), which indirectly owns 100% of the company's shares through Rosatom State Atomic Energy Corp., and Moody's assessment of strong probability of state support in the event of financial distress.

Uranium One rating is constrained by its relatively small scale, exposure to volatile uranium pricing, the short proven reserve life of its mines and its complex organizational structure, the agency said.

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