NRA Assigns ‘A’ Credit Rating To RusMoloko LLC; Outlook Stable
OREANDA-NEWS. National Rating Agency has assigned its national scale ‘A’ credit rating to RusMoloko LLC. The outlook for the rating is Stable. This is the first time RusMoloko is rated by NRA.
The rating reflects the company’s stable financial profile, in particular its moderate leverage and strong profitability and liquidity metrics, evidenced by RusMoloko’s 2015 financials. The company has a long-term debt profile, and low funding costs, corrected for government subsidies. RusMoloko has a strong position in the raw milk market. Its key customers are Moscow Oblast’s largest milk processing facilities.
The rating is constrained by RusMoloko’s short track record of operating performance and associated negative operating cash flow generation in 2015. While the company’s fixed asset depreciation is significant, RusMoloko carries out a fixed asset renovation programme, which mitigates this risk. NRA also notes the company’s elevated exposure to the industry risk.
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