RAEX Assigns Rating of Creditworthiness to Renaissance Securities
OREANDA-NEWS. "Expert RA" Rating Agency (RAEX) assigned a rating of creditworthiness (long-term creditworthiness) to the company Renaissance Securities (Cyprus) on the level А (high level of creditworthiness), second sub-level. The outlook is stable that means the strong possibility of rating retention at the same level in the middle-term period.
Renaissance Securities (Cyprus) Limited has a license of securities brokerage, trading, underwriting, custody and other investment and ancillary services provided by Cyprus Securities and Exchange Commission. The company specializes in securities trading activities.
Positive influence on the rating was high level of liquidity ratios (on 30.09.2014 cash ratio was 0.2, acid test ratio and current ratio were 1.1 adjusted for the quality of short-term investments), high quality of assets (72% of assets that consist of securities purchased under agreements to resell and trading assets is represented by securities of issuers that have the credit ratings above the level B under international scale of international rating agencies) and moderate high diversification in the debt structure. "Company is a trading and brokerage subsidiary of Renaissance Capital, it covers the markets of Russia, Central and Eastern Europe, Africa and the MENA. The owner of Renaissance Securities (Cyprus) Limited has the assets that are bigger than the volume of assets of the company. This fact makes a positive impact on the rating of creditworthiness", – Julia Lesina, senior expert, corporate ratings "Expert RA" (RAEX), mentions. In addition analytics mark the high level of risk management quality and moderate low level of accounts payable in the liabilities and equity structure (on 30.09.2014 - 12%).
The rating-restraining factors are: moderate high level of business diversification, low level of capital adequacy ratio ("CAR") calculated in accordance with the RAEX’s methodology (on 30.09.2014 - 0.13, but according to the Directive of the Cyprus Securities and Exchange Commission CAR was 0.23), moderate high level of debt ratios (on 30.09.2014 short-term payments/EBITDA2013= 1.8) and moderate high level of profitability (for 2013 ROA=0.9%). Analytics point out the decrease of assets (for 9 months 2014 -18%). Moderate high level of accounts receivable in the assets structure (on 30.09.2014 - 22%) and low level of financial information disclosure also have a deterrent effect.
Renaissance Securities (Cyprus) Limited is headquartered in Cyprus. On 30.09.2014 assets of the company were 3 bln dollars, capital – 399 mln dollars.
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