OREANDA-NEWS. National Rating Agency has affirmed its national scale credit rating on GlavTorgProduct OJSC (GTP) at ‘BBB+’.

Key factors underpinning the rating are the company’s long track record of operations in a highly competitive and import-dependent market, well-defined strategy, strong liquidity position and high financial strength, including the considerable share of equity in total funding liabilities and zero debt burden, as well as the government support of the sector GTP belongs to (in the form of subsidies to fish canneries and enterprises engaged in the reproduction of aquatic bioresources, funding of R&D and training activities in the fishery area and guaranties for the repayment of GTR’s obligations under loan agreements with banks). The rating is also supported by the decision to increase GTP’s share capital by RUB107 million.

The rating is constrained by the company’s currently small business scale, low profitability, considerably reduced cash flow and ambitious investment programme that may cause a debt burden increase in the future.