OREANDA-NEWS. National Rating Agency has assigned its national scale 'A' credit rating to Donskoy Zoloto LLC.

The rating reflects the company's stable medium-term financial profile, favorable operating trends, comfortable debt maturity profile, low funding costs and the favourable operating environment, including property tax and profit tax deductions and government subsidies on interest payments.

NRA note Donskoy Zoloto's well-considered and comprehensive growth strategy targeting a production capacity increase, the company's transparency and the high competence of its management.

Partially offsetting these strengths are Donskoy Zoloto's ambitious investment programme aimed at expanding and upgrading production capacities, which is likely to considerably increase the company's debt, although the latter is expected to go down as the capacity utilization rises to a planned level. The company's performance may be significantly affected by the exposure to industry and macroeconomic risks. Therefore we will closely monitor the phase-to-phase implementation of the company's investment policy and take appropriate rating actions if there are any unjustifiable deviations from declared targets.