Fitch Ratings Assigns Atomenergoprom BBB; Outlook - Stable
OREANDA-NEWS. Fitch Ratings has assigned JSC Atomic Energy Power Corporation (Atomenergoprom, 100%-owned by the State Atomic Energy Corporation ROSATOM), which consolidates the civil part of the Russian nuclear industry, a Long-term foreign currency Issuer Default Rating of “BBB”. The outlook is Stable.
The ratings have been assigned at the maximum possible, sovereign level and are aligned with those of the Russian Federation (ВВВ, the Outlook is Stable), that is ensured by the significant state support, provided to Atomenergoprom and its subsidiaries, as well as the strategic and operational ties with the State Atomic Energy Corporation Rosatom as the only shareholder of Atomenergoprom and the state due to the strategic importance of Atomenergoprom for the Russian economy.
Besides, the factors positively influencing the ratings assigned are the integrated business model of the company, ensuring the whole production cycle of the nuclear industry; large international order book, and operations under long-term contracts for uranium, enrichment, conversion services and fuel sales. In addition, in its press-release the rating agency notes that most of the new blocks of NPPs that the company plans to construct in Russia will operate under long-term capacity supply agreements that should support expected return.
Furthermore, in the opinion of the rating agency the influence of the factors mentioned above is mainly constrained by the company's exposure to price risk as well as a large investment program which is expected by the rating agency to be partly financed with external debt that could lead to some deterioration of the group's financial profile.
Nikolay Solomon, the First Deputy Director General - CFO of Rosatom, has noted that: "Assignment to Atomenergoprom of the credit rating at the sovereign level by Fitch Ratings once again confirms the sustainability and stability of the company from the financial point of view that is extremely important taking into account the existing plans of the company targeted at the diversification of the financing instruments. Now Atomenergoprom has the ratings from all international rating agencies, representing "The Big Three", that just confirms our adherence to the maintenance of transparent cooperation with the key creditors and investors".
Earlier Atomenergorpom was assigned the long-term credit rating by Standard & Poor's at the level of "ВВВ", the Outlook is Stable and the long-term credit rating from Moody's Investors Service at the level of "Ваа2", the Outlook is Stable.