The ‘A’ rating indicates that CJSC BALTIC COAST is qualified as a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for the loan / part of the loan is minimal.
CJSC BALTIC COAST was established 2000 and is in Top 10 largest fish processing enterprises of Russia. The company’s goods are delivered to all big cities of Russia. BALTIC COAST cooperates with a number of most far-reaching wholesale and retail trade companies.
CJSC BALTIC COAST has achieved a good pace of development. It has been steadily improving its revenue over the last years In 2010, sales revenue reached RUB 3,468.44 million increasing by 15.1% year-on-year (against 2009). For Q1 2011, revenue exceeded RUB 1 billion promising more than RUB 4 billion for the whole year.
The stable growth of the company’s assets is reliably supporting the rating score. As of January 1, 2011, assets of CJSC BALTIC COAST exceeded RUB 2,025 million (+13.6% against the beginning of 2010).
Despite the heavy debt load, the total debt to revenue ratio of CJSC BALTIC COAST for the period under review is within the 0.37-0.51 range, which is also favorable for the rating score. As a whole, this value is acceptable indicating that the total monetary flow generated by the company exceeds the amount of short-term debt and total liabilities so that CJSC BALTIC COAST can repay all its obligations with an annual revenue.
Experts of AK&M Rating Agency appreciate the positive debt profile of CJSC BALTIC COAST. Short-term obligations in the company’s portfolio are gradually replaced with long-term debt liabilities. As of the first quarter 2011, consolidated long-term liabilities accounted for about 85% of all credits and loans.
The steady growth of the current liquidity ratio is also supportive for the company’s rating. It reached 4.7 as of the end of 2010 and 7.1 in the first quarter 2011 which proves the company’s high paying capacity and exceeds the recommended value almost 3-fold.
Over the last years, the absolute liquidity ratio of CJSC BALTIC COAST is increasing: from 1.43 in 2010, it reached 2.32 for the first quarter 2011 and exceeded the recommended value more than 10-fold. This high value is a very positive signal.
The high skill level of the company’s personnel, the efficient management, the introduction of innovative fish processing technologies also improve the company’s impression.
The company has achieved a wide diversification of the range of goods produced ensuring steady consumer demand and hence steady revenue, which is also an argument for the rating score.
At the same time, the high (and constantly increasing) debt burden constitutes a serious risk factor for the company. Consolidated liabilities (credits and loans), according to the company’s reports for 2010, increased by 10.71% to RUB 1,408.4 million. In the second quarter 2011, they reached RUB 1,908.1 million
Debt to equity ratio of CJSC BALTIC COAST as of May 1, 2011 was 7.3.
However, a survey of the company’s credit history revealed that CJSC BALTIC COAST is meeting its liabilities regularly and in due time. Over the last years, not a single instance of the company's default on its liabilities or any arrears have been detected. As of the last reporting date, there are no liabilities in arrears in the company’s debt profile. The payment discipline of the enterprise is considered to be high.
Availability of its own raw material base is a strong positive argument indicates that the company’s will be less dependent on the volatility of raw materials prices in foreign markets.
Pre-tax profit of CJSC BALTIC COAST increased steadily till early 2010. In 2010, however, it decreased by RUB 75 million year-on-year to RUB 205 million.
Net profit (loss) of CJSC BALTIC COAST for 2010 was RUB 137.7 million decreasing by 26% year-on-year.
Over the period under review, CJSC BALTIC COAST showed a minor decrease in the return on business ratio inherent in large enterprises. Sales margin decreased from 17.8% in 2009 to 13% in 2010 and further slid to 11.8% in the first quarter 2011. In 2010, return on assets was 10.7%, which is below the 2009 result (18.4%). Return on investment decreased from 15.3% in 2009 to 8.5% in 2010.
Financial stability index decreased from 0.15 (early in the year 2010) to 0.11 as of the end of the year.
CJSC BALTIC COAST’s share of own funds in the liability profile is fairly low. As of January 1, 2011 it was 11.16%, below the previous year’s result (15.46%). As of April 1, 2011 the share of own funds in the company’s liabilities was 13.74%.
CJSC BALTIC COAST was established on October 27, 2000 as a company specializing in the production and sales of fish and various kinds of fish products.
CJSC BALTIC COAST is principally engaged in the production and sales of fish and seafood preserves. Its product range consists of more than 200 item names.

This press release is based on the statement of assigning a credit quality rating to CJSC BALTIC COAST.
The rating score, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's reliability and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities to the Company.
AK&M Rating Agency will not incur any responsibility for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.
AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.
AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Provision 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide business banking services to project and engineering entities implementing investment projects), the MICEX (as a prerequisite for including bonds in the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation base, for listing bonds and for providing access to the MICEX+ trading mode). Pursuant to an order of Russia's Government AK&M Ratings count for approving the capitalization increase procedure for banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.

CJSC Analysis, Consulting and Marketing Rating Agency
ul. Gubkina 3
Moscow, Russia
www.akmrating.ru
Press release by: A.Y. Zolotokopov
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.
E-mail: zolotokopov@akm.ru