Press Releases / 06.08.2013
Press Release as of 06.08.2013
CJSC AK&M Rating Agency affirmed the national-scale credit rating assigned to Baltic coast at ‘A’, revising the outlook from stable to positive.
Baltic coast qualifies as a highly reliable borrower. Risk of a delay in meeting liabilities is relatively low, restructuring risk for a loan / part of a loan is minimal.
The credit rating of Baltic coast is essentially supported by the increasing sales revenues, growing net profit, fairly high profitability and return ratios, equity capital growth, favorable debt maturity profile, moderate debt burden and lower loan debt.
The Company’s sales revenues have been on a steady growth trend for the last six years. Sales revenues increased by more than 21% in 2012, by more than 12% in the first quarter of 2013.
net profit growth is also contributing to the rating. Net profit increased almost 1.7 times in 2012 against 2011, further grew almost 1.6-fold year-on-year in Q1 2013. Baltic coast is still a sustainable and profit-making company. In particular, its return on equity (ROE) as of the end of Q1 2013 exceeded 68%.
equity capital has been steadily increasing in recent years, driven by its growth and business expansion. In 2012, equity capital of the Company increased more than twice, and further went up by more than 12% in the first quarter of 2013.
favorable debt maturity profile: almost 98% of its credits and loans have long tenors.
EBITDA ratio is 3.7.
At the same time, the low share of equity capital in liabilities, weak liquidity position, somewhat lower net asset value and slower payables / receivables turnover ratios are exerting pressure on the credit rating of Baltic coast.
low share of equity in liabilities has plagued Baltic coast for years. At the end of Q1 2013, this ratio was a mere 11.7%.
liquidity was found to be uncomfortably low. Current liquidity ratio was 0.63, absolute liquidity ratio was 0.3.
reduction in assets (by 1.4% for the first quarter of 2013).
slowdown in the turnover of payables and receivables was detected in the first quarter of 2013. The corresponding turnover ratios went down from 2.36 to 1.85 (for receivables), from 4.21 to 2.51 (for payables).
Baltic coast (part of the BALTIC COAST Group) was established on October 27, 2000 as a company specializing in the production and sales of fish and various kinds of fish products. The Company’s core business activities include the breeding, processing and sales of fish and fish products. Baltic coast’s share in the domestic market of its products reaches 20% (about 25% in St. Petersburg and Leningrad region, approximately 10% in Moscow and almost 20% in Russia as a whole). The company produces up to 200 fish product names. As of April 1, 2013, the Company’s assets totaled RUB 5.15 billion, annual sales revenue amounted to RUB 6.15 billion.
Company name: Baltic coast.
The auditor of Baltic coast is AUDIT-EUREKA Ltd., state registration certificate no. 35588, by resolution no. 52810 of the Registration Chamber of St. Petersburg as of 10/3/1996. Certificate of Entry in the Unified State Register of Legal Entities for a legal entity registered till July 1, 2002: series 78 no. 004024095 as of January 20, 2003. Location: ul. Frunze 25-34, 196135 St. Petersburg, Russia. The audit firm is a member of nonprofit partnership SRO Audit Chamber of Russia. Primary registration number in the SRO register: 10201002175.
This press release is based on the statement of assigning a credit rating to Baltic coast.
The credit rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company’s credit standing and shall not be considered as advice on the purchase and sale of securities or the provision of loan facilities.
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 Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010).
AK&M Ratings are recognized by the Central Bank of Russia (for providing unsecured lending facilities – Regulation 323-P), Vnesheconombank (for granting subordinated loans) and SME Bank (for its program of lending to SME businesses), RUSNANO (when selecting banks to provide cash and settlement services to project and engineering companies implementing investment projects), the MICEX (for the Corporate Bond Index / MICEX CBI and Municipal Bond Index / MICEX MBI calculation and bond listing purposes). By a resolution of Russia’s Government AK&M Ratings count for the recapitalization of banks. Besides, AK&M Rating Agency is recognized by AHML and accredited by SRO National Securities Market Association.
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