OREANDA-NEWS. National Rating Agency has affirmed its ‘АА-’ national scale credit rating on Aeroexpress LLC.

The rating is underpinned by the company’s improved 2014 financial performance (namely, expanded revenue generation and sharply increased net profit), two-fold growth in capitalisation, predominantly long-term debt, comfortable debt maturity profile, and its strong profitability and liquidity metrics. Additionally, the rating recognizes the company’s effective management, solid technological base, ability to leverage on JSC Russian Railways’ resources and infrastructure, as well as strong ownership structure.

The rating remains constrained by Aeroexpress’s low capitalisation level and ambitious investment programme, which triggers a need to raise additional debt financing. We also note the 2014 decline in the company’s traffic flow, driven by intermodal competition on routes where Aeroexpress operates, which increases as a result of transport infrastructure enhancement. The company’s traffic flow is also affected by the airports’ passenger flow, now declining due to the  worsening economic environment and declining real incomes of households in Russia.