OREANDA-NEWS. On 12 August 2009 Novorossiysk Commercial Sea Port (LSE: NCSP, RTS and MICEX: NMTP) announced that it’s BB+ credit rating has been affirmed by Standard & Poor’s rating agency with Stable outlook.

Commenting on the rating action, NCSP Chairman Alexander Ponomarenko said: "The affirmation of this high-level credit rating by one of the world’s leading rating agencies reflects the strengths inherent in NCSP Group’s business model and strategy. In the current market situation NCSP Group retains positive dynamics in financial and operating indicators. It has very low net debt level and continues to invest in new projects, which in the end will help us to restore growth rates quickly as the macroeconomic situation and the global trade revive".

"The affirmation reflects the improvement in NCSP's revenues and operating cash flows over the year, in line with its business plan. It also reflects NCSP's slightly declining debt levels, due to rising transshipment volumes in a difficult market", said Standard & Poor’s credit analyst Paul Lund.

According to Standard &Poor’s report, "NCSP's ability to take a wide variety of goods has protected margins during the global economic downturn". Negative factors are also offset by "the moderate volatility of seaborne commodities traffic through the economic cycle, an improving financial profile, and continued growth of Russian external seaborne trade".

Standard & Poor’s also notes that, "NCSP has adequate liquidity. At June 30, 2009, NCSP had the total cash balances of about \\$270 million*. Adequate cash is also available to pay for maturities in 2010 and 2011".

As of June 30, 2009 the NCSP Group’s loan debt amounted to \\$462.8 million*, and the average weighted rate for borrowings was 6.16 percent* per annum.

"The stable outlook reflects our expectation that NCSP's ongoing investment will result in further diversification of the cargo mix, helping to preserve margins and to mitigate potentially stronger competitive pressure", S&P said in the report.

According to management accounting data.