OREANDA-NEWS. November 2, 2012. Fitch also affirmed the Group’s National Long term rating at A+(rus), the outlook Stable. With such ratings Rosvodokanal Group proves to be a reliable investor.

This allows to obtain beneficial loans for upgrading the infrastructure in the regions of Russia which is especially important for water and wastewater utilities acting under the tariff restrictions. According to Michael Shneyderman, General Director of Rosvodokanal Management company, the Group demonstrated good performance for its operations and development in 2012. He noted that in 2011 the Group’s revenue increased by RUB 1,2 billion compared to 2010, it accomplished a number of large investment projects including the construction of water treatment plants in Krasnodar and Lugansk Oblast (Ukraine). Today the amount of Rosvodokanal Group’s investment programs is RUB 24,2 billion and a RUB 3 billion credit facility is available from EBRD.

The borrowings are being used for the investment programs in every operational area of the Group, i.e. in Krasnodar, Barnaul, Omsk, Orenburg, Tver, and Tyumen. From the end of 2012, the water utility in Voronezh (joined the Group in 2012) will start to implement its investment program. Fitch expects Rosvodokanal will increase its business volumes by asset acquisitions and improve payments collectability. Since 2014, long term tariff rates for water supply are expected to be applied and improve income transparency in the sector. According to Fitch, these are positive indicators allowing Rosvodokanal Group to maintain and improve its default rating.