RusRating lowers and cancels ZAO Neftegazoptimizatsia credit rating
OREANDA-NEWS. RusRating has lowered the credit rating assigned to ZAO Neftegazoptimizatsia from “BBB” to “C” on the national scale and from "BB" to “D” on the international scale, subsequently cancelling the rating.
The rating cut reflects the cessation of financing for construction and installation work under existing contracts, a substantial decline in the scale of the Company’s operations, the absence of new contracts, and the growing scale and frequency of unmet obligations to suppliers and contractors.
Constraining factors included the small scale of the Company’s operations, minimal operating cash flow, a high debt burden, insufficient liquidity, and unmet obligations to suppliers and contractors.
About the Company
ZAO Neftegazoptimizatsia [trs. Oil and Gas Optimisation CJSC] was set up on 7 September 2006. Its principal business is the design and construction of complex road traffic management systems. It has worked on projects of national significance such as the St. Petersburg Ring Road, the Moscow-St. Petersburg highway and the Resort Avenue relief road in Sochi. Its principal client is OAO Mostotrest. The Company is owned by two equal partners, S.L. Novikov and A.V. Savchenko.
Assets consist mainly of investments in current construction and installation projects, while most liabilities take the form of accounts payable. Financing for current work began to decline in the second half of 2015, along with operating revenues, and accounts payable increased noticeably. No new contracts have been signed. The Company’s debt burden is high. Risk sensitivity is very high. Liquidity is insufficient.
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