OREANDA-NEWS. National Rating Agency has affirmed its national scale 'A+' credit rating on National Nonmetallic Company OJSC (NNC).

The rating is supported by NNC's leading position in the European Russia's nonmetallic minerals market, successfully implemented nationwide expansion strategy, seeking to consolidate the highly fragmented nonmetallic minerals market, and its strengthening financial performance. We note the positive changes in the company debt maturity profile, the markedly reduced relative debt burden and rapidly improving operating performance, allowing NNC to increase its operating revenue.

The rating is constrained by NNC's remaining debt burden and low IFRS capital adequacy. At the same time, we note that NNC's capital adequacy ratio is on a growing path due to the stable net profit generation this year and in the past. Another negative factor, in our opinion, is the beneficiary owner's involvement in a number of court cases.