S&P says Norilsk Nickel may have to cut dividends to keep ratings

MOSCOW, Jul 9 (PRIME) -- Russian metals giant Norilsk Nickel may have to cut its dividends if it wants to keep credit ratings, international rating agency S&P Global Ratings said in a research note on Thursday.

The company should have enough leeway within the framework of a long-term issuer default rating of BBB- to pay the U.S. $2 billion fine for damaging the environment, but it may have to get approval of shareholders for a dividend cut, the analysts said.

A fuel tank at Norilsk-Taimyr Energy Company, part of Norilsk Nickel group, lost pressure on May 29 and leaked out 21,000 tonnes of fuel and lubricants into the river Ambarnaya, causing a fire.

On Monday, the Federal Service for Natural Resources Oversight assessed the damage inflicted on the environment by the spill at 147.7 billion rubles. The company contested the amount on Wednesday, but confirmed its commitment to eliminate the consequences.

(71.2379 rubles – U.S. $1)

End %%md/jst%%