OREANDA-NEWS. National Rating Agency has affirmed its national scale ‘A+’ credit rating on ServiceTransCleaning LLC (STC). The outlook for the rating is negative.

The rating affirmation reflects the company’s high capital adequacy ratio, stable customer base, enabling a high and steady sales volume, and liquidity position, which is historically stronger than the market average. We note STC’s strong corporate governance, financial control and business process management practices, as well as its business diversification programme that should positively impact its financial performance in the medium term.

The company’s weakened profitability metrics, increasing relative debt leverage and heavy business expansion costs affecting financial performance are viewed as risk factors. Additionally, we note the historically high concentration of the company’s customer base: STC’s anchor client accounts for a lion’s share of generated revenue. However the customer base significant diversification, expected in the medium term, should enhance the sustainability of STC’s business.