OREANDA-NEWS. National Rating Agency has withdrawn its credit rating on Moscow Electrical Products Manufacturing Plant (Moscow Electroshchit) due to expiry of the rating contract. NRA assigns the company an exit rating of 'BBB'.

In July 2012, Moscow Electroshchit was assigned NRA's credit rating of 'A', which was re-affirmed in October 2013 and lowered to 'A-' in January 2015.

NRA notes that the company has declined to provide its up-to-date financials and has not disclosed them publicly. In addition to the missing financials, the exit rating factors in the following risks that have previously been instrumental in bringing the rating down: the considerable leverage increase combined with operating income reduction in the context of a high currency risk; the company's low profitability, asset turnover slow-down, growing receivables, sales being behind targets and the potential regulatory risk increase for Russian electric power industry companies (the company's key customers).

NRA notes the decision of the company's Board to "recommend the General Meeting of Moscow Electroshchit's Shareholders not to distribute dividend for the year 2014 due to lack of profit". After posting a profit of around RUB2 million for January -September 2014, which was down 68% from the same period a year earlier, the company said it planned to increase profit to RUB16 million by the year end. The above-cited recommendation to the General Meeting of Shareholders suggests that this target had not need achieved.