The Moody's Ratings agency has assigned Almalyk Mining and Metallurgical Combine a long-term corporate family rating of Ba2 with a stable outlook for the first time.
Additionally, the company received a default probability rating of Ba2-PD and a baseline credit assessment of ba3.
Why the overall rating is higher than the baseline
The difference between the two metrics is significant. The baseline credit assessment of ba3 reflects the company's standalone creditworthiness — without accounting for external support. The overall rating of Ba2 is one notch higher.
The reason is the methodology applied to government-related issuers. The government owns 98.7% of the combine's shares, and the agency factors in a high probability of extraordinary support in case of financial difficulties.
The assessment considered:
- Uzbekistan's sovereign rating at Ba2;
- high interdependence between the company and the state in case of default;
- the strategic importance of the enterprise for the economy.
Scale of the enterprise
In 2025, the combine contributed 5% of GDP and 5.8% of state budget revenues.
The enterprise remains Central Asia's largest copper producer, accounts for a significant portion of the republic's silver and gold output, and also produces sulfuric acid, copper sulfate, and other products.
What Ba2 rating means
The rating falls in the speculative category — two notches below investment grade. For an issuer, this implies higher borrowing costs on international markets compared to investment-grade companies.
Alignment with the sovereign rating is typical: corporate ratings rarely exceed a country's rating, since the company operates within the same legal and economic environment.
Context
Obtaining an international rating is a standard step before accessing external capital markets. Other local issuers have previously taken similar paths: AKFA Aluminium is preparing a $300 million eurobond placement, and banks consistently obtain and update ratings from Fitch and S&P.
For investors tracking the combine's share prices on the local exchange, having an international rating provides an additional benchmark for assessing the issuer's credit quality.
This material is for informational purposes only and is not an investment recommendation.