Expert RA: Uralmash-Izhora Group’s Rating Limited by Low Diversity, Lacking Profit

The rating agency Expert RA affirmed the solvency rating of United Machine-Building Plants (Uralmash-Izhora Group) at A (high solvency level), with Stable rating outlook.

The agency’s analysts report that the rating was favorably affected by the increase in the company’s capital between December 31, 2008 and June 30, 2011 as well as by net assets growth and the positive net working capital.

‘It must be noted that United Machine-Building Plants keeps reducing its debt burden and expects to finish the financial year 2011 with some positive net profit,’ Expert RA says.

As for the factors that prevent the company’s rating from growing further, the analysts pointed to loss-making and poor business diversity.

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