10 Aug 2009 07:16
Press-release
Standard & Poor's Affirmed BB+ Rating for NCSP with Stable Outlook
August 10, 2009
Novorossiysk Commercial Sea Port (LSE: NCSP, RTS and MICEX: NMTP) announces today that it's BB+ credit rating has been affirmed by Standard & Poor's rating agency with Stable outlook.
Commenting on the rating action, NCSP Chairman Alexander Ponomarenko said: «The affirmation of this high-level credit rating by one of the world's leading rating agencies reflects the strengths inherent in NCSP Group's business model and strategy. In the current market situation NCSP Group retains positive dynamics in financial and operating indicators. It has very low net debt level and continues to invest in new projects, which in the end will help us to restore growth rates quickly as the macroeconomic situation and the global trade revive».
«The affirmation reflects the improvement in NCSP's revenues and operating cash flows over the year, in line with its business plan. It also reflects NCSP's slightly declining debt levels, due to rising transshipment volumes in a difficult market», said Standard & Poor's credit analyst Paul Lund.
According to Standard &Poor's report, «NCSP's ability to take a wide variety of goods has protected margins during the global economic downturn». Negative factors are also offset by «the moderate volatility of seaborne commodities traffic through the economic cycle, an improving financial profile, and continued growth of Russian external seaborne trade».
Standard & Poor's also notes that, «NCSP has adequate liquidity. At June 30, 2009, NCSP had the total cash balances of about $270 million*. Adequate cash is also available to pay for maturities in 2010 and 2011».
As of June 30, 2009 the NCSP Group's loan debt amounted to $462.8 million*, and the average weighted rate for borrowings was 6.16 percent* per annum.
«The stable outlook reflects our expectation that NCSP's ongoing investment will result in further diversification of the cargo mix, helping to preserve margins and to mitigate potentially stronger competitive pressure», S&P said in the report.
* According to management accounting data.
About NCSP Group
Novorossiysk Commercial Sea Port is the largest Russian port operator in terms of cargo turnover. Group's consolidated cargo turnover in 2008 totaled 81.6 million tonnes. Consolidated revenue to IFRS for the 2008 totaled $653.777 million.
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 includes the following stevedore companies: PJSC NCSP, PJSC Novorossiysk Grain Terminal, OJSC Novorossiysk Ship Repair Yard, PJSC NCSP Fleet, OJSC Novoroslesexport, OJSC IPP, and Baltic Stevedoring Company Ltd.
For more information please contact:
Tel.: +7 (495) 783-5434; IR@nmtp.info
Pjsc Novor. S (NCSP)