OREANDA-NEWS. National Rating Agency has affirmed its national scale 'A+' and its global scale 'iBB' credit ratings on Polyplast JSC. The national scale credit rating of ‘A+’ was assigned on Aug. 20, 2012 and affirmed on Aug. 22, 2013 and Aug. 26, 2014, when also the global scale credit rating of ‘iBB’ was assigned and affirmed.

The rating reflects the company’s strong position in the market of chemical additives for the cement, concrete, mining and smelting industries. NRA notes Polyplast’s good business diversification and extensive distribution network, which comprises more than 40 offices and branches in the Russian Federation, EU and CIS countries, Turkey and UAE. The company’s own scientific and technical center and four production facilities enable maintanance of favorable operating and financial performance trends. In 2013-14, Polyplast ‘s revenue grew by 14% a year — and this growth continued in 1H 2015. The company also demonstrates consistently positive net-profit results with a pronounced upward trend and strong profitability metrics. The company is implementing a well-devised investment programme, financed with the help of a diversified pool of banks and through its own debt instruments (bonds). With its exports growing and foreign currency denominated debt staying very low (0.3% of the total debt), Polyplast benefins from the ruble depreciation, which not only raises its competitive profile in the international markets, but also presents a barrier for importers to the Russian market. Growing export revenue will be the key driver of the company’s business in the medium term.

Partially offsetting these strengths are risks, such as the debt increase (the company's borrowings have doubled over 2.5 years) as a result of the group’s investment programme; growing debt service costs affecting Polyplast’s profitability and hindering the implementation of its long-term growth strategy; and the decline in domestic demand for the company’s products, associated with the construction sector slump and general slowdown in Russia’s economic activity.

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