OREANDA-NEWS. Expert RA rating agency has confirmed the A+ long-term creditworthiness rating (very high grade of creditworthiness) for UTair and UTair-Finance. The rating is positively affected by the leading market position of the airline, its moderately high liquidity level and high level of insurance coverage. UTair also maintains a high level of transparency, a low proportion of largest counterparties in its revenue and cost structures, a high level of diversification and an extensive geography of activities. Expert RA also pointed out UTair's moderately low currency risks, acceptable level of debt diversification, low share of largest counterparty in its debt structure and its rapid rate of asset accumulation as positive factors in the rating confirmation.

Expert RA executives noted that UTair shareholder actively supports the company. "A decision was made to increase UTair capital by 13.8 billion rubles to cover company's debt," said Expert RA Director for Corporate Ratings Pavel Mitrofanov. "This has positively affected UTair's position in the rating."

The rating was limited to A+ level due to significantly high levels of debt load and mortgaged property combined with an insufficient level of capital. The airline's creditworthiness outlook was changed from "stable" to "negative", the third subcategory, due to the volatile situation in the aviation industry that is affecting the airline's activities.

Expert RA also confirmed an A+ bond loan reliability rating (very high grade of reliability) on UTair Finance bond obligations series BO-06, BO-07, BO-08, BO-09, BO-10, BO-11, BO-12, BO13, BO-15 and 05. The ratings for bond series BO-03, BO-04 and BO-05 bond obligations have been recalled as UTair Finance has successfully discharged these bond obligations.

UTair Aviation is the core enterprise of UTair Group consisting of companies performing aircraft operations with fixed wing and rotary wing aircraft as well as enterprises offering MRO, personnel training, flight services and air transportation sales services. The Group includes UTair-Express, UTair-Ukraine, UTair CJSC, UTair-Helicopter services , Turuhan Airlines, Vostok Airlines, Katekavia, Helisur, UTair Europe, UTair South Africa, UTair India, TS-Technik, UTair-Engineering, Ural Aviation Services, UTG, UTair-Armenia and other enterprises. UTair Group headquarters are located in Surgut, Tyumen, Khanty-Mansiysk, Moscow and other places in Russia and abroad.

UTair Finance is a UTair Aviation subsidiary established to develop and implement investment programs for its parent company. The total volume of bonds issued in circulation on the Moscow Exchange have a nominal value of 14.5 billion rubles and are included on the A1 quotation list of the listing exchange.