OREANDA-NEWS. On 26 December 2008 was announced, that Veles Capital analysts expect about 18 companies will suffer financial difficulties with servicing of  public debts during the next 4 months.  About 24 companies may not pass the offers  worth 38 bln RUR. This data are published in recent Veles Capital strategy research.

During next 4 months about 180 offers worth 360 bln RUR  excluding coupon payments are planned on the Russian debt market.  Also Eurobond offers worth 420 bln RUR are planned. Analysts say that since January 2008 12 defaults of 8 issues  had already occurred: 7 times companies could not repay offer and 5 times – coupon payments. By November 2008 29 technical defaults had occurred: 20 of them were negotiated and 9 may be registered as real defaults in the nearest future.

At risk are retail companies as credit is the main source if their development. In general the issues at default risk have similar characters: high leverage (debt / EBITDA > 4), increase of unfunded debt, high receivables, and negative dynamics of financial figures.

Commenting the research, Veles Capital Investment Group CEO Sergey Zhdanov told: “Today many investors hold defaulted securities. And as we see from research data the amount of defaulted securities will increase. We offer investors complex service on managing the defaulted securities portfolio. The service includes not only law consulting and juridical defense but also negotiating on debt restructuring, resale of securities or converting securities in to equity. Veles Capital holds leading positions on the Russian debt market so we see the possibilities of working with such securities”.

Veles Capital IC has been operating on the Russian financial market since 1995 and is rated amongst TOP 10 of Russian largest investment companies on total turnover with securities. The company holds leading positions in the promissory notes market, is rated amongst TOP-3 of largest operators of bond market and TOP-10 of largest operators of stock market. The company renders brokerage and trust management services, corporate finance, and strategic investments.