ACRE affirms company and its bonds at “AAA(RU)” with a stable Outlook
Analytical credit rating Agency (ACRA) affirmed the credit rating of JSC “MOESK” and its bonds of series 001Р-01 and 001Р-02 at “AAA(EN)”, the rating Outlook is stable, according to a press release from the Agency.
The credit rating of the company according to the Agency, due to the strong market position of the company in the regions where it is the largest player, strong operating profile, which is characterized by moderate regulatory risk and sales, high profitability, and moderate debt burden and strong liquidity situation.
Deterrent effect on the assessment of their own creditworthiness has a weak cash flow because of substantial capital investments. ACRE assesses the likelihood of grant aid, the key shareholder of JSC “rosseti” – like high.
The expected reduction in electricity consumption in March-may, 2020 associated with quarantine actions in the Moscow region and with a reduction in overall economic activity, is, in the opinion of AKP limited, the demand shows a low elasticity, therefore the influence of these factors on the operations of the company is insignificant.
As of may 14, 2020 debt portfolio “MOESK” amounted to 87.6 billion rubles, the total debt subject to the pension liabilities and 91.7 billion. According to the Agency, on bond loans accounted for 49.1% of the company’s loan portfolio, the rest of the liabilities represented by Bank loans. In addition to the two bids on bonds in the current year for a total amount of 10 billion roubles, all the debt of the company is long-term.
Qualitative assessment of debt load “MOESK” according to ACRA, is not at the maximum level due to the fact that one lender accounted for more than 50% of the loan portfolio of the company. The company does not disclose information about the lender, resulting in financial transparency (according to the methodology of an ACRE) also is not at the maximum level. Estimated ACRES in 2020-2022 years expected to maintain the debt at current levels in connection with necessity of financing of the investment program.
Currently in circulation are also 6 issues of exchange bonds of the company 43 billion rubles.
MOESK – networking company serving consumers of Moscow and Moscow region. The main shareholder is OJSC “Russian grids (MCX:RSTI)” with a share of 50.9%, from ZAO “Leader” of 17.29%, Gazprombank – 4,5%, the “OEK-Finans” – 5,05%.