Credit rating agency GCR Ratings has reaffirmed platinum miner Northam Platinum's South African-scale long-term and short-term credit ratings at A+(za) and A1(za), respectively, with the outlook maintained as 'stable.'
The affirmation of Northam's rating is supported by its strong liquidity profile, robust financial position and continued expansion of production. Liquidity has been strengthened to provide the group with sufficient financial resources to continue its development activities, the agency states.
According to GCR, national scales and their definitions are indicative of the relative risk within a single jurisdiction.
On the national scale, the A+ rating indicates a high credit quality, while the A1 rating speaks to the view that there is a high certainty of timely payment of short-term obligations.
GCR notes that Northam's position as one of the lowest-cost platinum group metal (PGM) producers globally, with a flexible production profile, will enable it to weather the current downcycle better than many of its larger peers.
The 'stable' outlook reflects GCR's view that Northam's robust liquidity position will provide the necessary financial resources to withstand the cyclical downturn in PGM prices.