RG Brands JSC (Kazakhstan) about rating assigned by Moody's Investors Service

/IRBIS, Andrey Tsalyuk, January 12, 05/ - On December 24 of 2004 REUTERS agency informed with reference to Moody's Investors Service about assigning of "B2" senior implied rating and "B3" senior unsecured issuer rating to RG Brands JSC (Almaty) on that day. Ratings outlook is "stable". The original message of Moody's Investors Service about it was retransmitted by IRBIS (Almaty) on December 24. Today press-service of RG Brands JSC spread press-release, in which the company commented on ratings assignment. In the opinion of Askar Kanafin - financial director of Resmi Group, in the staff of which RG Brands JSC is, receipt of the ratings is the great success of RG Brands JSC, which became possible due to successfully worked out and well realized strategy of growth, which had been based on expansion and profitability of business. "Rating assigned to RG Brands JSC objectively evidences about the financial health and achievement of global standards in management system", - he said. "Speaking about the importance of this event I would like to note that this rating, as a whole, being globally recognized characterization of issuer's financial and economic position, improves investment attractiveness of the branch itself for both foreign and Kazakhstan investors, evidencing about the process of transparentization and setting of exact standards of corporate governance, and also in great degree promotes to creation of investment market in the country", -the press-release quotes Kanafin's words. Message of Moody's Investors Service says assigning of "В2" rating with stable outlook is, first of all, the result of the fact that company has a stable position on the market of juice and juice-containing production, gas drinks, dairy and tea products; second, it evidences tat a good macroeconomic climate has appeared in the country, which was caused by growth of oil branch and stable growth of populations real incomes; third, it's the confirmation of forecasts of Moody's about growth of Kazakhstan food market several times as much within the next three-five years. Besides, the key factors are: constant expansion of company's goods portfolio, presence of long-term exclusive contracts with the world producers, such as Pepsi Co and Nestle, presence of own distribution network in 20 biggest cities of the country, and also the strong management team of RG Brands JSC. According to rating agency's information, the stable rating also reflects outlook of Moody's concerning the further strengthening of position of RG Brands JSC on the market due to its own capital investments, most part of which will be financed by free money flows. The press-release of RG Brands JSC say this company is diversified by production and sale of consumer goods in the staff of Resmi Group (RG). Since the moment the holding was founded in 1994 Resmi Group consitnues to make investments on non-banking financial services market, including insuring and controlling pension assets (pension fund "Korgau" and insurance company Premier). RG Securities and Premier Asset Management, which are in the staff of Resmi Group also successfully operate on investment market. Group's sales volumes reach USD200 m., and total assets amount to USD300 m. Over 3000 employees work in companies and manufacturing firms of Resmi Group. [2005-01-12]