Rating agency Standard and Poor’s assigned a “BBB-” corporate credit grade to the biggest mining and metalworking company on the Russian market Norilsk Nickel. While the company’s country rating has been set at “ruAA+”, Standard and Poor’s did list Norilsk Nickel on CreditWatch with a negative outlook. 

Standard and Poor’s noted that the inclusion of Norilsk Nickel on Credit Watch shows the rating agency’s concerns in regards to the weakness of the entity’s management. Talking about Norilsk Nickel’s governance practices, Standard and Poor’s noted that they lack adequate transparency and disclosure. The company had not published audited financial statements for the last fiscal year as of the date of the rating downgrade. The relevancy of the information risk is all the more significant in view of the company’s treasury stake transaction with the international trader Trafigura.