RAEX demotes Uralmashzavod to B++
13 January 2016 (13:51)
January 13, 2016. Expert RA (RAEX) demoted Uralmashzavod’s rating down to B++ (Satisfactory), with Negative rating outlook.
This change from Stable to Negative is reflexive of the increased likelihood of the rating going further down in the medium term, the agency explains. The plant used to be rated as A (High).
’The dropping rating had to do with the company’s funds (calculated in accordance with the Russian Accounting Standards) diminishing to a point below zero in the second quarter of 2015 and with the lack of any plan on the proprietor’s part to make the figure go up. The agency does not think the company will manage to break even in the next twelve months or reach a positive capital balance on its own. The loss-making trend will keep gathering pace and affecting the company’s funds, which is the reason behind our Negative rating outlook,’ says RAEX Rating Managing Director Pavel Mitrofanov.
As of June 30, 2015, Uralmashzavod’s assets were estimated at 13.8bnRUR (in accordance with the IAS) /18.1bn RUR (in accordance with the Russian Accounting Standards); its own funds came to 4.3bn RUR and -78m RUR, respectively, its revenues to 4bn RUR/3.7bn RUR, and its net loss to 2.7bn RUR/2.3bn RUR.
This change from Stable to Negative is reflexive of the increased likelihood of the rating going further down in the medium term, the agency explains. The plant used to be rated as A (High).
’The dropping rating had to do with the company’s funds (calculated in accordance with the Russian Accounting Standards) diminishing to a point below zero in the second quarter of 2015 and with the lack of any plan on the proprietor’s part to make the figure go up. The agency does not think the company will manage to break even in the next twelve months or reach a positive capital balance on its own. The loss-making trend will keep gathering pace and affecting the company’s funds, which is the reason behind our Negative rating outlook,’ says RAEX Rating Managing Director Pavel Mitrofanov.
As of June 30, 2015, Uralmashzavod’s assets were estimated at 13.8bnRUR (in accordance with the IAS) /18.1bn RUR (in accordance with the Russian Accounting Standards); its own funds came to 4.3bn RUR and -78m RUR, respectively, its revenues to 4bn RUR/3.7bn RUR, and its net loss to 2.7bn RUR/2.3bn RUR.
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