Stroytransgaz Assigned A-Level Credit Rating with Stable Outlook

Moscow, Russia – The rating agency АК&M assigned Stroytransgaz A-level national credit rating with stable outlook based on the company’s financial results in 2011. Thus, Stroytransgaz was ranked among borrowers with a high reliability level and low risk of untimely fulfillment of obligations, whole or partial debt restructuring.

“Such high assessment of one of the leading Russian rating agencies is yet another proof of the right development course of the company as well as the effective financial policy run by Stroytransgaz management team”, Sergey Makarov, the company’s President, pointed out.

Among crucial factors of high credit rating AK&M marked out the growth in Stroytransgaz revenue in 2011 by over 27.4% (41.4 bln RUR), as well as profitability indices. By the end of the fourth quarter the assets profitability reached 1.38%, equity capital – 18.74%, invested capital – 2,53%. These are the company’s highest indices for the past six years that prove work efficiency and high development dynamics.

The repayment of the loan for approximately 12 bln RUR in March 2012 and the debt portfolio optimization (the share of long-term loans and credits in the portfolio accounted for 78%, and thus lowered debt burden and increased the company’s financial stability) had a significant impact on the credit rating of Stroytransgaz.

Stroytransgaz rating also benefited from the company's diversification policy started in 2005. Last year, Stroytransgaz kept increasing its scope of works in power industry and augmented the share of the projects in the company's profit from 20% in 2010 to 57% in 2011. In 2011, the company also started its second road construction project – Molodogvardeyskaya road junction in Moscow.

Additional Information

PJSC Stroytransgaz is a major Russian construction and engineering company. It implements and manages investment and construction projects in oil and gas, power energy and other fields of industrial and civil construction in seven Russian regions and fourteen foreign countries.

In 2011, Stroytransgaz took an active part in oil and gas and power energy projects with total contract value over 150 bln RUR. The company’s profit in 2011 reached 41.4 bln RUR, 27.4% more than in 2010. The increase in scope of construction works (22% of them were carried out at overseas projects) during the business year accounted for 28.6 % of the profit.

AK&M is one of the top independent national rating agencies of Russia accredited by the Russian Ministry of Finance. AK&M ratings are acknowledged by Central Bank of Russia, Bank for Development and Foreign Economic Affairs, RUSNANO, MICEX, Government Regulation as a precondition for bank recapitalization. АК&М specializes in assigning credit ratings to various companies, banks, and regions.