OREANDA-NEWS. RusRating has increased the credit rating of ZAO EG Capital Partners from "AA" to “AA+” on the national scale and from "BBB" to “BBB+” on the international scale, in both cases with a stable outlook.

The rating increase reflects further growth in assets under management plus the increased credit quality and liquidity of the investment portfolio.

The rating is based on the Company's substantial own funds, good corporate governance, the upward trend in external funding and healthy asset quality.

Constraining factors include the high concentration of assets under management (by major clients) plus the moderate liquidity of the Company's investments.

About the Company

ZAO EG Capital Partners is a major Russian asset management company set up in 1994. A licensed securities market participant, it is authorised to manage securities, investment funds, mutual funds and non-state pension funds. Currently it manages the assets of four pension funds and five mutual funds plus various corporate and retail clients. Assets under management total approx. R130bn.

The client base is judged reasonable solid but concentration by individual client appears high: a few key clients account for 96.6% of all assets under management. The investment portfolio’s credit quality is broadly healthy, while liquidity appears moderate. As in earlier periods returns are reasonably strong; in RusRating’s view, comparatively weak performance in the first quarter of 2015 reflects a large inflow of cash and the resulting need for a rapid re-design of the investment portfolio. The Company’s own earnings from management fees are roughly market standard but have lagged behind consumer inflation. Overall sensitivity to financial risks is judged low.