TASHKENT, Uzbekistan, December 15. S&P
Global Ratings has affirmed the long-term credit rating of
Uzbekistan’s uranium producer Navoiyuran at ‘BB-’ and revised the
outlook to positive, Trend reports.
The outlook revision reflects the company’s strong operating
performance and strategic partnerships. In 2024, Navoiyuran
produced 5,200 tons of uranium, significantly exceeding its target
levels, while 99% of its revenue is secured through contracted
sales. The company has also obtained nine new mining licenses and
doubled its capital investment, strengthening its potential for
further production growth and additional long-term contracts.
S&P expects Navoiyuran’s EBITDA to rise sharply in 2025 to
between 10 trillion and 11 trillion soums ($834 million–$917
million), driven by higher output and rising uranium spot prices.
At the same time, increased costs for materials, logistics, and
employee benefits are expected to be partially offset by favorable
exchange rate movements and lower fixed costs per unit of
production.
The agency notes that Navoiyuran continues to maintain a
conservative financial profile, with debt to EBITDA remaining below
1x since its establishment in 2022. The positive outlook indicates
the possibility of a rating upgrade within the next 12 months,
provided the company sustains stable production and profitability
and maintains funds from operations (FFO) to debt above 60%.
At the same time, S&P warned that the rating outlook could
be revised to stable in the event of operational disruptions or
excessive shareholder payouts. An upgrade would be considered if
the company continues to demonstrate steady production growth,
strong margins, and moderate leverage.
