Fitch might cut Norilsk Nickel

Fitch Ratings said it placed PJSC MMC Norilsk Nickel's ratings on rating watch negative following the announcement by its 27.8% shareholder, United Co. Rusal plc, of its intention to launch consent procedures to obtain the necessary approvals from its shareholders and debtholders to exercise a shoot-out under its shareholder agreement with Whiteleave Holdings Ltd (30.4% stake in Norilsk Nickel).

Fitch said the negative watch captures the negative governance implications of the resurgence and potential escalation of the dispute between Norilsk Nickel’s largest shareholders following a five-year lock-up period that ended in December 2017.

The action also reflects uncertainties about Norilsk Nickel’s strategic direction and the potential pressure on the group's financial profile should a debt-funded shoot-out materialize, the agency explained.

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