Volga Engineering Group CJSC's Credit Rating Affirmed
The rating is underpinned by the company's accumulated experience in the market, strong market position, significant amount of completed projects for large companies, as well as reduction of the debt load as of September 30, 2015, and plans of repaying in full all debts in 2016.
The rating was affirmed due to signing a new contract and being in the final stages of signing another major contract, the total amount of which is going to be 1.763 billion rubles without VAT. By affirming the 'BBB+' national scale credit rating, the Agency removes the company from its Watchlist, on which it was placed with an indefinite outlook in July 2015, due to the absence of any signed contracts for 2015.
Nevertheless, the Agency will continue to monitor relevant financial statements and information about the financial position of the company.
The rating is constrained by the company's unprofitableness in 2014 and 9 months of 2015, as well as significant debt load and negative equity.
The main revenues of the company come from the implementation of major projects, a contractor for which is chosen based on results of tenders. The company's contracts are short-term, therefore the company's performance annually depends on the successfulness of auctions.