"Expert RA" awarded IEK GROUP a high level of financial reliability.
The Expert RA rating agency has assigned IEK GROUP a high credit rating of ruA- and assesses the rating prognoses, as stable.
The credit rating was assigned by IEK GROUP for the first time, the company immediately received the ruA- level in the group "moderately high level of creditworthiness/financial reliability/financial stability compared to other rating objects in the Russian Federation". The positive rating is due to a stable market position, conservative financial policy, high quality of corporate governance and strategic planning.
“Obtaining a credit rating is one of the steps in our company's consistent move towards publicity. In 2022, IEK GROUP plans to place its debut bond issue on the Moscow Exchange. The ruA- rating will make it possible to obtain favorable terms for the issuer on this loan,” Andrey Zabelin, CEO of IEK GROUP, notes.
The head of the company also stressed that the rating and investment consultants of “Otkritie” Bank were involved in the process of obtaining the rating - experts helped to understand the methodology for assigning a credit rating and prepare materials for the Expert RA agency in a quality manner.
As a result, the experts were able to more accurately assess the competitive and market potential of IEK GROUP. According to the agency, the electrical industry market is characterized by low capital intensity and, as a result, high competition. At the same time, the company is among the top three leading players in the presented segment, which indicates its significant market positions.
The company's block of financial risks was also positively assessed. As stated in the rating press release of the agency, “the company is characterized by a low level of debt, the ratio of debt to EBITDA does not exceed 1.5x. IEK GROUP has been actively increasing its financial results over the past years. For the period 2018 - 2020 the company's revenue increased by 30% in the comparable IFRS consolidation perimeter. At the same time, despite such a significant growth, the company demonstrates good profitability indicators, EBITDA margin is about 14% over the specified period.”
Mr. Mikhail Gorbachev, Financial Director of IEK
GROUP, commented on this event: “In our opinion, the Expert RA rating agency
appreciated the very strong financial profile of IEK GROUP, its business model
and top positions in key sales markets. We believe that investors in our debut
bonds will also appreciate these factors of the company's high credit strength,
which will be reflected in an attractive coupon rate.”