"Expert RA Kazakhstan" assigned "SAT & Company" JCS B++, bonds reliability rating B++

/IRBIS, September 16, 2011/ - The rating agency "Expert RA Kazakhstan" JSC has assigned "SAT & Company" credit rating at B ++ (an acceptable level of solvency). Also reliability rating of B ++ (an acceptable level of reliability) has been assigned, informs the press service of the agency. As indicated in the message, the key positive factors were the growth of equity (for the period from December 31, 2008 to June 30, 2011 at 88.23%) and diversified structure of business ("SAT & Company" owns assets in Kazakhstan, the Republic of Turkey, China, sells petroleum products, metals, coal to international markets). Among other factors had a positive impact on the rating, it should be noted stable market position, a program to upgrade and modernize the main production equipment and high level of corporate governance. "In the framework of the investment program, designed for the 2011- 2014 year, the company plans to install smelters on owned by it Taraz Metallurgical Plant, which will allow it to significantly increase production and sales of manganese ferroalloys, and higher incomes", - the expert on non-financial sector of rating agency "Expert RA Kazakhstan" Anna Akopyants said. From the information of agency one can understand that the main factors constraining the rating are the high level of overdue receivables (on June 30, 2011 is 46%), a significant increase in accounts payable (for the period from December 31, 2008 to June 30, 2011 at 123.8 %), low diversification of loan commitments (the share of largest lender by June 30, 2011 is 60.8%), and modest foreign exchange risks. The negative factors were identified as a high level of leverage (the ratio of debt to June 30 2011 to revenue for 2010 is 4.74) and reduced net working capital (for the period from December 31, 2008 to June 30, 2011 at 156%) . Also, the company is characterized by low levels of economic activity (during the accounts payable turnover for 2010 was 310 days, receivables 155 days) and low liquidity (ratio of absolute liquidity at June 30, 2011 - 0.05, acid-test ratio - 0.35, the current ratio - 0.5). "Given the significant impact that the negative factors on the financial stability of the Company, the Agency will closely monitor the dynamics of the debt and profitability", - was said in a statement. [2011-09-16]