03.07.2024
One of the leading Russian rating agencies, ACRA, confirmed VIS Group’s credit rating at level A(RU). The rating outlook is stable. The official press release was published on the agency's website.
“The credit rating of VIS Group (AO) is based on its strong business profile and stable market position. In addition, the regional diversification of the Group's operating activities is assessed as good. The Group's financial risk profile is characterized by a low debt burden and high level of profitability. In addition, the Group has a good liquidity position and free cash flow (FCF),” the rating agency stated in a press release.
Agency analysts emphasize that the Group’s credit rating is grounded in its robust business profile and stable market position, with a portfolio of concessions and PPP agreements that is one of the largest in the country at the moment. There are 8 such projects at the investment stage and 3 at the operation stage. In total, over 100 facilities have been commissioned since 2000.
“The results achieved to date prove that we have chosen the right strategy and business directions. The PPP project market in Russia is demonstrating strong growth and has good prospects in light of the national development goals declared by the country’s leadership. Our experience of communicating with the regions confirms this. Currently, the investment division is working on several initiatives, including in new regions,” commented Sergei Romashov, Chairman of VIS Group’s Board of Directors.
The public side in the Group's PPP projects are regions with excellent credit quality. ACRA experts also noted a good level of corporate governance, low currency and interest rate risks, and they also expect FFO profitability before net interest payments and taxes to remain at the current level.
“Transport, healthcare, housing, demography, ecology – these are the areas in which the state intends to invest an unprecedented amount of funding in the coming years. And these are precisely the areas in which VIS Group has gained strong competencies and significant experience. In 2024-2028, we predict an increase in cash receipts, including capital grants and subsidies for the creation of facilities,” said Sergei Yudin, CEO of VIS Group.
Passing the rating procedure and regular confirmation of credit ratings by several agencies is an established practice for large Russian companies, which allows to objectively assess their level of reliability and creditworthiness. For the first time, VIS Group underwent a rating procedure in 2020, which was associated with the holding’s entry into the capital markets and the issue of project and exchange-traded bonds.
ACRA confirms VIS Group’s credit rating at A(RU) with a stable outlook
“The credit rating of VIS Group (AO) is based on its strong business profile and stable market position. In addition, the regional diversification of the Group's operating activities is assessed as good. The Group's financial risk profile is characterized by a low debt burden and high level of profitability. In addition, the Group has a good liquidity position and free cash flow (FCF),” the rating agency stated in a press release.
Agency analysts emphasize that the Group’s credit rating is grounded in its robust business profile and stable market position, with a portfolio of concessions and PPP agreements that is one of the largest in the country at the moment. There are 8 such projects at the investment stage and 3 at the operation stage. In total, over 100 facilities have been commissioned since 2000.
“The results achieved to date prove that we have chosen the right strategy and business directions. The PPP project market in Russia is demonstrating strong growth and has good prospects in light of the national development goals declared by the country’s leadership. Our experience of communicating with the regions confirms this. Currently, the investment division is working on several initiatives, including in new regions,” commented Sergei Romashov, Chairman of VIS Group’s Board of Directors.
The public side in the Group's PPP projects are regions with excellent credit quality. ACRA experts also noted a good level of corporate governance, low currency and interest rate risks, and they also expect FFO profitability before net interest payments and taxes to remain at the current level.
“Transport, healthcare, housing, demography, ecology – these are the areas in which the state intends to invest an unprecedented amount of funding in the coming years. And these are precisely the areas in which VIS Group has gained strong competencies and significant experience. In 2024-2028, we predict an increase in cash receipts, including capital grants and subsidies for the creation of facilities,” said Sergei Yudin, CEO of VIS Group.
Passing the rating procedure and regular confirmation of credit ratings by several agencies is an established practice for large Russian companies, which allows to objectively assess their level of reliability and creditworthiness. For the first time, VIS Group underwent a rating procedure in 2020, which was associated with the holding’s entry into the capital markets and the issue of project and exchange-traded bonds.