13.11.2015, 00:32
RTI OJSC's Credit Rating Affirmed
OREANDA-NEWS. National Rating Agency has affirmed its 'AA-' national scale credit rating on RTI OJSC ("the Group") based on the support rating of 'RS2' reflecting potential support form Sistema JSFC.
NRA has revised its outlook on RTI's credit rating to Stable from Positive. The Group's first-time credit rating of 'AA-' was assigned on July 3, 2013 and reaffirmed with a Positive outlook on July 17, 2014.
NRA's current rating outlook has been revised to Stable due to the fact that during the period under review the RTI Group continued its asset restructuring, which has not been finalized and has influenced the earlier projected time of the outlook materialization.
The Positive outlook materialization prerequisites have not been fully met at the date of the rating update. That is why NRA believes that it can consider the rating outlook revision to Positive, and that this outlook may be materialized if: the Group's growth pace and the its key business lines' profitability maintain at least at the current level; the Group's debt remains manageable; and if the Group breaks even in terms of net income.
The rating affirmation reflects RTI's position as a key player in its niche markets, considerable competitive strengths, strategic importance,active participation in the government's high-tech projects and consistently filled up order portfolio. RTI's strong corporate governance practices and transparency, the management's focus on business process streamlining and the high quality of corporate and financial control, mitigating internal and external risks, are additional rating strengths. In addition, NRA noted the projected separation of the Information and Communication function that should improve the Group's key performance metrics, such as profitability, capital adequacy ratio, etc.
The rating is constrained by the Group's inadequate equity and exposure to currency risks that affect its financial performance and the capital adequacy ratio. The rating is also pressured to some extent by the absence of the Group's audited 2014 financials, which, however, is due to reasons beyond the Group's control (the Group plans to prepare audited financials for 2015).
NRA has revised its outlook on RTI's credit rating to Stable from Positive. The Group's first-time credit rating of 'AA-' was assigned on July 3, 2013 and reaffirmed with a Positive outlook on July 17, 2014.
NRA's current rating outlook has been revised to Stable due to the fact that during the period under review the RTI Group continued its asset restructuring, which has not been finalized and has influenced the earlier projected time of the outlook materialization.
The Positive outlook materialization prerequisites have not been fully met at the date of the rating update. That is why NRA believes that it can consider the rating outlook revision to Positive, and that this outlook may be materialized if: the Group's growth pace and the its key business lines' profitability maintain at least at the current level; the Group's debt remains manageable; and if the Group breaks even in terms of net income.
The rating affirmation reflects RTI's position as a key player in its niche markets, considerable competitive strengths, strategic importance,active participation in the government's high-tech projects and consistently filled up order portfolio. RTI's strong corporate governance practices and transparency, the management's focus on business process streamlining and the high quality of corporate and financial control, mitigating internal and external risks, are additional rating strengths. In addition, NRA noted the projected separation of the Information and Communication function that should improve the Group's key performance metrics, such as profitability, capital adequacy ratio, etc.
The rating is constrained by the Group's inadequate equity and exposure to currency risks that affect its financial performance and the capital adequacy ratio. The rating is also pressured to some extent by the absence of the Group's audited 2014 financials, which, however, is due to reasons beyond the Group's control (the Group plans to prepare audited financials for 2015).
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