16.12.2015, 22:58
Pravovye Deistviya's Credit Rating Withdrawn
OREANDA-NEWS. National Rating Agency has withdrawn its credit rating on Pravovye Deistviya JSC due to expiry of the contract and the company's decision to stop participating in the rating process. Pravovye Deistviya has been assigned an exit rating of 'BBB-' on the national scale.
Pravovye Deistviya was assigned NRA's first-time individual credit rating of 'A' , falling into the "Holding and Financial Companies" section of NRA's rating list, on Dec. 28, 2011. The rating was affirmed at this level with a Negative outlook on June 30, 2015, based on the support rating of 'RS3', reflecting the probability of support that the company could get from related parties.
At the same time, the company was assigned a national scale stand-alone credit rating of 'BBB+'. The exit rating does not factor in the company's support rating, as NRA has not been provided sufficient information about the supporting party at the time of the exit rating assignment.
The rating is supported by the company's strong equity-to-total-assets ratio (0.42), high balance-sheet liquidity metrics and predominantly long-term debt maturity profile.
The rating is constrained by the company's poorly diversified investment portfolio and concentrated revenue base, loss-making operations and heavy reliance on funds generated by its financial investments. NRA also notes the company's failure to meet its earlier set operational targets. NRA points out that it will not monitor the company any longer due to the expiry of the contract for rating services. Therefore, the lack of sufficient up-to-date information about the company is regarded as a risk factor.
NRA's analytical products, including ratings and the contents of this press release, are statements of NRA's independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.
Pravovye Deistviya was assigned NRA's first-time individual credit rating of 'A' , falling into the "Holding and Financial Companies" section of NRA's rating list, on Dec. 28, 2011. The rating was affirmed at this level with a Negative outlook on June 30, 2015, based on the support rating of 'RS3', reflecting the probability of support that the company could get from related parties.
At the same time, the company was assigned a national scale stand-alone credit rating of 'BBB+'. The exit rating does not factor in the company's support rating, as NRA has not been provided sufficient information about the supporting party at the time of the exit rating assignment.
The rating is supported by the company's strong equity-to-total-assets ratio (0.42), high balance-sheet liquidity metrics and predominantly long-term debt maturity profile.
The rating is constrained by the company's poorly diversified investment portfolio and concentrated revenue base, loss-making operations and heavy reliance on funds generated by its financial investments. NRA also notes the company's failure to meet its earlier set operational targets. NRA points out that it will not monitor the company any longer due to the expiry of the contract for rating services. Therefore, the lack of sufficient up-to-date information about the company is regarded as a risk factor.
NRA's analytical products, including ratings and the contents of this press release, are statements of NRA's independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.
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