Fitch Ratings and CRU Group today announced a strategic agreement to incorporate CRU’s expertise in the Metals and Mining sectors into Fitch’s industry research and credit analysis. From the end of October, Fitch Ratings’ research and analytics in Metals and Mining will be enhanced by CRU’s industry leading market analysis.
The company credit analysis and research reports that result from this partnership will be broader, more frequent and more insightful than contemporary market offerings. This approach lends itself particularly well to the Metals and Mining sector, which is characterised by scientific and technical challenges, high capital expenditure and operations that are frequently located in remote jurisdictions. Crucially, the inclusion of detailed information on cost curves and market forecasts will provide valuable insight into likely commercial outcomes in a sector where selling prices are set by the external commodities markets.
Ian Linnell, President of Fitch Ratings said: “Cost curve analysis is a fundamental driver of credit risk in Metals and Mining, and there is no better source for this information than CRU. Investors who utilize Fitch’s research and ratings will now have an added depth of understanding in Metals and Mining that no other rating agency can rival.”
The combined analysis from Fitch and CRU will provide market participants with a comprehensive, well informed and more accurate ratings product on which to base their investment decisions and to better price risk. The combined research will apply to all Fitch-rated issuers in the Metals and Mining sector. The new rating reports incorporating CRU content can be accessed via Fitch’s dedicated Metals and Mining web page. They will also be offered as part of a regular Fitch subscription.
Robert Perlman, Executive Chairman of CRU Group, said: "This partnership will benefit both CRU and Fitch whilst ensuring CRU retains the independence, authority and integrity that underpin the CRU business as a whole. It creates an opportunity for both parties to expand their coverage and to share expertise for the benefit of our customers."
Fitch Ratings and CRU share a similar approach to how they deliver world-class analysis. Both firms are committed to independent analysis and transparency, have highly experienced analytical teams around the world, and understand the importance of enhancing knowledge through direct engagement with the market.
