Last checked at 16 May 2011 12:44
Press release
Moody's Revised NCSP Rating
16.05.2011
Novorossiysk Commercial Sea Port Group (LSE: NCSP, RTS & MICEX: NMTP) hereby announces that international rating agency Moody's has revised NCSP's corporate rating and its Eurobond issue rating.
On May 12, 2011 Moody's Investors Service has downgraded to Ba3/Aa3.ru from Ba1/Aa1.ru the corporate family rating (CFR) and probability of default rating (PDR) of PJSC Novorossiysk Commercial Seaport ("NCSP"). Moody's has also downgraded the USD300 million worth of 7% loan participation notes due in 2012 issued by Novorossiysk Port Capital S.A. (the "Loan Participation Notes") to B1/Loss Given Default assessment of LGD4 from Ba1/LGD4. The rating outlook is stable.
The stable outlook on the ratings reflects Moody's expectation that: "(i) NCSP will see continued growth in its business; (ii) the company's capex programmes are appropriate for the expected growth; and (iii) cash flows generated will enable NCSP to deleverage in terms of debt/EBITDA, thereby allowing the company to meet its debt maturities on a timely basis and comply with the financial covenants of the Sberbank loan".
According to Moody's, "the USD2.15 billion acquisition of PTP, mostly financed by the Sberbank Loan, has increased NCSP's indebtedness significantly. PTP is Russia's largest crude oil exporting port, and with the recent addition of capacity to handle oil products, would be expected to generate good cash flow over the coming years. The seven-year tenor of the Sberbank Loan suggests that a fairly rapid pay-down of the debt is possible".
Full text of the rating release may be found at: http://www.moodys.com/
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator and the 3d operator in Europe in terms of cargo turnover. NCSP shares are traded on Russia's RTS and MICEX exchanges (NMTP) and on the London Stock Exchange (NCSP) in the form of GDRs (1 GDR representing 75 shares). NCSP Group consolidated cargo turnover in 2010 totaled 81.6 million tons (excluding Primorsk Trade Port), and consolidated revenue to IFRS in 2010 totaled $ 635,3 million and net profit $ 258,4 million. NCSP Group includes the following stevedore companies: PJSC Novorossiysk Commercial Sea Port, PJSC Primorsk Trade Port (since 2011), PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Shipyard, PJSC Fleet of NCSP, OJSC NLE, OJSC IPP, and Baltic Stevedoring Company Ltd.
For more information please contact:
+7 (8617) 650 043; senko@ncsp-net.com; IR@nmtp.info