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From Industrysearch.com ---
31/10/2007 - Global ratings agency Fitch has affirmed its long term credit rating on zinc and lead group Zinifex Ltd, after miner divested its smelting assets. Zinifex Ltd banked about $1.6 billion from the initial public offer of smelting group Nyrstar, which comprises the former zinc and lead smelting and alloying businesses of Zinifex and Belgium-based Umicore.

Fitch affirmed Zinifex's long term rating at BB-plus.

Fitch director Maurice O'Connell said the significant cash injection from the offer, an ungeared balance sheet and strong cash flows from existing mining assets provided Zinifex with a strong foundation to grow its higher-margin mining business.

However, the business accounted for 38 per cent of Zinifex's net profit for fiscal 2007, so the sale could result in lower profits and cash flows in the immediate future, he said......