National Scale Credit Rating Of CHERRY LANES TRADING LIMITED (Cyprus) Affirmed At ‘A’
The rating reflects CLTL’s growing assets, stable liquidity position and limited operational risks. We view the company’s external debt as manageable relative to the assets’ market value, and debt maturity profile as comfortable. The rating recognizes CLTL’s strong and financially sound partners, committed to the company and willing to assist it in achieving its policy targets and support it in times of distress.
The company’s financial strength and credit rating are pressured by the high market risk and asset-liability concentration, shortage of stable long-term funding and elevated currency risks, some of which materialized in late 2014. Additionally, CLTL’s operating income is limited compared to the debt level. The specifics of its assets expose the company not only to the market risk, but also to industry risks stemming from its investments in non-ferrous metals, and macroeconomic risks associated with deterioration of Russia's economic situation in 2015.
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