"Expert RA Kazakhstan" has downgraded the creditworthiness rating of "Imstalkon" JCS (Kazakhstan) to B level

/IRBIS, July 15, 2011/ - The rating agency "Expert RA Kazakhstan" in the monitoring downgraded credit rating of JSC "Imstalcon" (Company) to Level B (satisfactory level of solvency), and bond rating (NIN - KZP01Y07D549, KZP02Y07D547, KZP01Y07D747) to level V (a satisfactory level of reliability), was indicated in the report released today by the "Expert RA Kazakhstan." As stated previously, the Company and its bond had rating B + (a sufficient level of reliability). It is noted that the major factor negatively affecting the level of credit rating of JSC "Imstalcon" and reliability of its bond issues remains a high debt load and the delay in the restructuring of outstanding debt. On December 31, 2010 expired debt of JSC "Imstalcon" was 43% of the total debt of the Company. The same factors that contributed to the reduction of the rating is low liquidity (Cash ratio for the first quarter of 2011 - 0.02, acid-test ratio for the same period - 0.47, the current ratio - 0.45), low business diversification (based on 2010 revenue was formed by assembly firms to 51.9%), and a high percentage of accounts receivable (22% of assets) and growth (by 51% in 2008 - 2010). For companies with low profit margins (based on 2010 return on net assets to net income amounted to 2.38%, ROA - 0.95%, ROE - 2.38%, ROS - 1.66%) and the presence of negative net working capital (-6.6 bn in December 31, 2010 and -8 billion at the end of the first quarter 2011). "Having such a large scale in the Company's negative net working capital, carries a substantial risk of liquidity gap, which is now estimated as the agency is low. However, the number and size of contracts and the general revival of the market can improve the situation and possibly raise the rating", - says an expert on non- financial sector of rating agency "Expert RA Kazakhstan" Anna Akopyants, whose words are reported. As indicated, the key positive factors rating of JSC "Imstalcon" included strong market position in industrial construction and metal Kazakhstan, as well as implementation of a number of contracts for Agip KCO (project "Marine overpass in Kurlyk" new administrative complex in Bautino). Bonds of "Imstalcon", released in the first bond program (KZP01Y07D549, KZP02Y07D547; total volume of issues - 8.4 billion, a floating coupon rate, redemption in 2016) were included in KASE's official list in 2009. The first issue (KZP01Y07D747) in the second bond programs (recorded June 3, 2010) was included in the KASE official list on September 8, 2010. JSC "Imstalcon" specializes in construction and manufacturing of steel structures. Sales by the end of 2010 amounted to 33.8 billion tenge, profit - 0.5 billion, total assets at 31 December 2010 amounted to 62.6 bln, capital - 23.1 billion tenge. [2011-07-15]