OREANDA-NEWS. December 12, 2012. RusRating has assigned a credit rating to KingCoal (Moscow). The rating is “BBB” on the national scale and “BB” on the international scale, in both cases with a stable outlook.

According to the agency, the rating is based on a high anticipated operating margin and internal rate of return on a project to acquire coal mining assets; a reserve cash flow from existing coal production facilities; and solid demand for the Company’s product that provides ample scope for sales growth.

Constraining factors include high uncertainty risks in connection with the launch of a new business project (the acquisition of coal production assets, restructuring of associated debt and an expansion of production capacity) plus a high debt burden and non-transparent ownership structure.

KingCoal Ltd is a private-sector limited liability coal company that operates production facilities in Primorye region in the Russian Far East. It plans to acquire a range of coal fields in the Rostov region.