Press Releases / 15.09.2015
Press Release as of 15.09.2015 Status-A LLC AK&M Rating Agency has affirmed the national scale credit rating of Status-A LLC at 'A', tier 3, with a stable outlook. The 'A' rating indicates that the Company is highly creditworthy. The risk of a failure to meet obligations in time is low, the full or partial debt restructuring risk is minimal. The rating assignment was based on the Credit Rating Methodology for Corporates (Issuers) and Financial Assets rev. January 23, 2014 including the amendments approved by the Methodology Committee on February 18, 2015). Status-A LLC positions itself in the Russian market as an investment holding company focused on securities transactions, financial intermediation and asset management services. At the same time, Status-A LLC is the majority shareholder of RUSSLAVBANK (Commercial Bank Russky Slaviansky Bank Closed Joint-Stock Company) holding a 75.5% equity stake, actually being the nominal shareholder in the interests of Abdulzhelil Abdulkerimov, the ultimate beneficiary of the credit institution. The Company's rating is supported by its growing sales revenues, profitable operations, zero loan debt, strong liquidity position and the 'A' credit rating assigned to the main affiliate. Revenue of Status-A LLC is growing steadily. In the first half of 2015, the Company's total revenue reached RUB 1.8 billion exceeding the result achieved for the same period in 2014 almost 3 times. The Company has also considerably improved its profit performance. In the first half of 2015, operating profit of Status-A LLC exceeded RUB 28 million, earnings before interest, depreciation and tax grew to RUB 26.3 million while net profit exceeded RUB 4 million increasing almost four times year-on-year. By the time the second half of 2015 started Status-A LLC had fully repaid all the credits and loans previously taken out, resulting in a zero loan debt at the moment. While Status-A LLC has no loans to repay, its liabilities mainly arise from an insignificant amount of accounts payable (RUB 314 thousand). The substantial excess of current assets over accounts payable has pushed up the Company's liquidity ratios very high in 2015. Given that Status-A LLC holds shares in RUSSLAVBANK, this bank's financial risks, in many respects, apply to Status-A LLC. Besides, the creditworthiness of Status-A LLC is closely linked to the credit profile of RUSSLAVBANK. The Company's affiliation with RUSSLAVBANK implies a high probability of financial backing from the common beneficiary of Status-A LLC and RUSSLAVBANK. Therefore, the credit rating of Status-A LLC is, to a certain extent, derived from that of RUSSLAVBANK (rated 'A' by AK&M Rating Agency in May 2015), which speaks in favor of the alignment of Status-A's credit rating with that of the bank. At the same time, the Company's rating is constrained by the narrow range of financial instruments and the absence of licenses to act as a professional securities trader. Financial investments of Status-A LLC are highly concentrated, 85.4% of them have been effected in shares of RUSSLAVBANK that are not listed or traded in the organized equity market. This is a major restriction on the upside potential of the rated Company's profitability. The absence of licenses for dealing, brokerage and asset management activities is also narrowing the business opportunities of Status-A LLC.
Status-A LLC has been actively developing its investment business since 2010. The company is registered at the place of its subsidiary bank RUSSLAVBANK (Prospekt Mira 3, bld. 3). As of July 1, 2015, the Company's authorized capital totaled RUB 2,031.1 million. The ultimate beneficiary of Status-A LLC is Abdulzhelil Makhmudovich Abdulkerimov, Chairman of the Board of Directors and a shareholder of RUSSLAVBANK. Company name: Status-A LLC. As of July 1, 2015, assets of Status-A LLC amounted to RUB 2.07 billion, equity capital was RUB 2.07 billion. The Company's auditor is AUDIT-ESCORT LLC. AK&M Rating Agency assigned a credit rating to Status-A LLC for the first time on August 5, 2014. The last rating action in relation to the Company was taken on August 5, 2014. All rating action announcements are available on the akmrating.ru website. The rating is valid until mid-September 2016. AK&M Rating Agency may revise the rating and/or the outlook during this period if circumstances fundamentally influencing the Company's creditworthiness are revealed. For estimation purposes, we completely rely on the reliability of information provided by the Company. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors. This press release is based on the Statement of assignment of a credit rating to Status-A LLC. The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds. AK&M Rating Agency shall not be held liable 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. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.
AK&M Rating Agency Ul. Gubkina 3, Moscow, Russia Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.
|