OREANDA-NEWS. National Rating Agency has affirmed its national scale ‘A’ credit rating on Astrakhan Pledge Fund OJSC (APF). The outlook for the rating remains negative.

The rating affirmation is driven by APF’s important social role in its home region. The rating recognizes the company’s growing counterparty base and low balance sheet liabilities. Earlier, NRA noted the considerable delinquency rate increase, linked to materialized agricultural risks (Astrakhan Oblast’s economic landscape has been historically dominated by small and medium-sized agricultural enterprises and oil and gas companies with no access to state guarantees), as well as APF’s weakened profitability and stagnating guarantee issuance business. During the past year, the delinquency rate tended to decline, along with APF’s contingent liabilities as a percentage of the guarantee reserve, which was partially due to the general guarantee portfolio decrease.

At the same time, the outlook remains negative as a result of APF’s high exposure to a single sector and sustained operating losses. The outlook may be revised, if the company’s cash flows turn positive and its key strategic plans are successfully implemented.

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