Moody's changes ERG view to negative

Moody's Investors Service said it changed to negative from stable the outlook of Eurasian Resources Group (ERG) Sarl. Concurrently, Moody's affirmed ERG's B2 corporate family rating and B2-PD probability of default rating.

“Today's change of ERG's outlook to negative and affirmation of its ratings primarily reflect Moody's view that the company's leverage will remain elevated, while the start of production and earnings growth following commencement of Phase 1 of cobalt and copper production at its RTR processing plant in the Democratic Republic of Congo (DRC, Caa1 stable) in the end of 2018 and planned commencement of Phase 2 of this project in Q2 2020 will not be able to offset weak market fundamentals and an extended period of low prices for the company's core metals: ferrochrome, cobalt and aluminium,” the agency said in a press release.

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