Expert RA Affirms Ratings of PAVLODARENERGO and its Bonds
OREANDA-NEWS. August 27, 2012. Rating agency "Expert RA Kazakhstan" has affirmed the creditworthiness of JSC "PAVLODARENERGO" at level А+ (very high level of creditworthiness) and reliability rating of the first issue of bonds (NIN - KZ2C0Y10С606) at level А+ (very high level of reliability), reported the press-centre of KASE.
Amongst main factors having influenced the company rating, there is notably the lasting growth of assets under the implementation of the long-term program of overhaul and modernization of fixed assets based on an agreement with the Ministry of Industry and New Technologies of the Republic of Kazakhstan by 30.31% and capital by 39.52% in the period from December 31, 2010 to March 31, 2012. High profitability ratios (2011: ROA-5.71%, ROE-9.53%; 2010: ROA-
5.31%, ROE-9.04%) and liquidity (absolute liquidity ratio - 0.65, ratio of emergency liquidity - 2.68 and ratio of current liquidity - 3.04 based on Y2012 Q1 results) contributes to maintaining the rating at a high level.
"A fact important for the company is the presence of the European Bank for Reconstruction and Development (EBRD) and Islamic Infrastructure Fund amongst the owners, enabled by participation in the parent company JSC "Central-Asian Power Energy Corporation " (CAPEC). Currently, EBRD provides to the company long-term loans on beneficial conditions for implementation of long-term investment programs aimed at building of an advanced energy company complying with international standards in the field of production, ecology, health protection and social sphere", - points out expert of Rating agency "Expert RA Kazakhstan" Zhanadiar Raisova.
Main factors restricting the rating level are the high indebtedness of the Company (ratio of debt volume based on Y2012 Q1 results to the gross income for 2011 - 1.96) and high concentration of debt upon one funding source (the main part of the debt falls on bonds (51%)).
Bonds of the Company (NIN - KZ2C0Y10C606; issue volume - KZT8 bn, face value - KZT100, floating coupon rate, depending upon inflation, maturing in 2017) are included in the official list of the special trading floor of RFCA since December 14, 2007. Currently the total face value of bonds outstanding makes up KZT7.9 bn.
The Company's main activities include production, transmittance and distribution of electric and heating energy in the city of Pavlodar and Pavlodar region. Production capacities are placed in the cities of Pavlodar and Ekibsatuz. Based on Y2011 results, the assets were estimated at KZT63.6 bn, equity - 39.2 bn, revenue - 25.9 bn and net income - 3.3 bn.