Expert RA Kazakhstan confirmed credit rating of JSC Imstalcon at B+

/IRBIS, December 6, 2010/ - The rating agency "Expert RA Kazakhstan" in monitoring confirmed the credit rating of JSC Imstalcon at the level of B + (a sufficient level of solvency) and its bonds at B+ (a sufficient level of reliability), indicated in distributed today message "Expert RA Kazakhstan." In a news release agencies indicated that the levels of credit ratings Imstalcon JSC and reliability of its bond issues are still the greatest effect the restructuring of outstanding debt of the group. On 1 December arrears Imstalcon group of companies is 55% of the total debt of the group. Since the assignment of the primary rating, the company lowered the amount of overdue debt by 11%, reached a preliminary agreement to restructure the remaining portion. The company plans to complete the process of restructuring by the end of 2010. If the question is in arrears will not be fully resolved by January 1, 2011, the likelihood is high that the Agency will reconsider the level of the assigned ratings. Progress in restructuring the company, as well as the availability of the complete portfolio Imstalcon for 2010-2011, other things being equal, were the main reason why we have reaffirmed the company's rating on the same level of B +. The question of restructuring the outstanding debt is now the principal and his decision will be a defining for action in terms of ranking Imstalcon both positive and negative direction,"- said General Director of Expert RA Kazakhstan Mr. Adil Mamazhanov, whose words are reported. It is noted that the key positive factors were considered moderately high rates of return (in 2009, return on assets was 2.3%, return on capital - 5.6%, return on sales - 4.2%), strong market positions (39 place sales volume in the rating of Expert-100-Kazakhstan). Moderately high levels of financial stability (a ratio of its own working capital - 1.2), as well as a major project for the construction of the base metal on the shore of the Caspian Sea. The main factors constraining the rating companies, are the presence of a negative net working capital (-7.6 bln KZT on 6/30/2010), and a high proportion (24.1% of assets) and growth in accounts receivable (by 11.7% in 2008-2009, while reducing revenue by 7.3%). [2010-12-06]