OREANDA-NEWS. National Rating Agency has affirmed its national scale ‘AA-’ credit rating on Seligdar PJSC. The company’s first-time credit rating of ‘A’ from NRA was assigned on Nov. 10, 2011. Later, it was twice upgraded, to ‘A+’ on Oct. 12, 2012 and to ‘AA-’ on Oct. 25, 2013. On Oct 30, 2014, Seligdar PJSC’s rating was affirmed at ‘AA-’.

The affirmation reflects the group’s maintained strong position in its market and its progress towards the implementation of its production growth and operating cost reduction strategy. NRA views positively the group’s ability to maintain its stable financial profile amid the challenging economic conditions. The group’s debt burden is viewed as manageable, considering the reasonable equity-to-debt and EBITDA-to-debt ratios. The financial strength and liquidity metrics remain within NRA’s ‘AA-’ rating guidelines. Seligdar PJSC’s debt maturity profile has improved compared with 2013. On the latest reporting date, the debt consisted primarily of long-term borrowings from a leading Russian bank. The group’s considerable experience in gold mining, strong corporate governance practices and support received from strong strategic partners and shareholders are additional rating strengths.

The dependence of the group’s business and operating performance on gold prices is viewed as a risk. Other weaknesses include the exposure to currency risks that may severely affect the group’s financial performance through its FX-denominated borrowings, although in reality, these risks are offset by revenues from the sales of gold, as the latter’s price is tied to the US dollar.

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