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"National Rating Agency" confirmed IDGC of Centre’s credit rating at "AA" with a stable outlook. The credit rating was first assigned to the Company 22.08.2007 at the level "A". The last rating action dated 16.12.2015, when the credit rating was affirmed at "AA" with a stable outlook.
IDGC of Centre is an electric grid company, the main activities of which are electric power transmission and connection of new customers to power grids. IDGC of Centre was incorporated in 2004 as part of the reform of the Russian electric power industry and the unbundling of energy companies by activity and their subsequent interregional integration. IDGC of Centre operates in 11 regions of Central Russia, where it has its branches (the Belgorod, Bryansk, Voronezh, Kostroma, Kursk, Lipetsk, Orel, Smolensk, Tambov, Tver and Yaroslavl regions). The controlling shareholder is PJSC "Rosseti", which owns 50.23% shares of the Company. The main end-holder of PJSC "Rosseti" is the state represented by the Federal Agency for State Property Management.
The company’s website is at www.mrsk-1.ru
The rating confirmation is due to strong shareholder structure, leading market positions and strong financial position of the Company for a long period of time. The positive impact on the Company’s credit rating is made by positive changes of key financial indicators at the end of 1H 2016, a moderate debt burden and relatively high liquidity, profitability and financial stability ratios.
Restraining influence on the rating level is given by such factors as the possibility of state influence on the process of tariff regulation, growth of dividend pay-outs with significant capital costs and a possible increase in the debt burden in the future due to the need to finance its large-scale investment program.
According to the consolidated financial statements under IFRS as at 30.06.2016, the total assets of the Company amounted to 102.6 billion rubles with equity capital of 40.7 billion rubles. There is a high level of own funds in the sources of financing (equity ratio is stable around 0.4). The Company’s total debt at the end of 1H 2016 amounted to 42.6 billion rubles, the bulk of which was long-term (about 98%). As at 30.09.2016, the value of the total debt remained practically unchanged. The debt portfolio of the Company is formed almost in equal shares by bank loans and bond issues. Crediting banks are Sberbank and VTB Bank. The level of the Company’s debt burden is moderate - the ratio of Net debt/EBITDA, on an annualized basis, as at 30.06.2016 was at about 2.4x and the ratio OCF/short-term debt exceeded 20x. The Company’s revenues for 1H 2016 amounted to 41.5 billion rubles, which is 6.7% more than last year. The revenue growth was driven by the increase in tariffs for the Company’s services and the revenue increase from the provision of grid connection services. The Company’s net income as at 30.06.2016 was 2.5 billion rubles (as at 30.06.2015 - 1.2 billion rubles).