Fitch upgrades Jinchuan

Fitch Ratings said it upgraded Jinchuan Group Co., Ltd.'s long-term foreign-currency issuer default rating and foreign-currency senior unsecured rating to BBB from BBB-. The agency also upgraded Jinchuan's guaranteed $280 million of 4% senior notes due 2024 to BBB from BBB-.

“The upgrade reflects Jinchuan's improved stand-alone credit profile (SCP), which is driven by higher profitability, a stronger financial position, consistent cash flow generation and favorable market conditions over the next few years,” Fitch said in a press release.

The agency said it forecasts Jinchuan's readily marketable inventory-adjusted funds from operations net leverage was 1.7x in 2021, and will rebound to 2.3x in 2023, as it believes nickel and copper prices peaked in 2021 and will normalize in the next two to three years.

The outlook is stable.

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