ACRA Assigns the BBB(RU) Rating to Setl Group’s Bonds

03.11.2017

The national rating agency ACRA has assigned the BBB(RU) credit rating to the Setl Group holding company’s bond issue. 

According to the national agency ACRA, the BBB(RU) credit rating is accounted for by a very strong business profile, high profitability of the business, low debt burden and strong liquidity of the company.

It is to be recalled that yesterday, on November 2, Setl Group holding company’s 5 billion rubles’ worth of bonds were placed. The demand for the bonds exceeded the offer, the coupon rate being 9.7%.

"We regard this bond issue as a successful return of the company to Russia’s debt market after a 10-year hiatus," says Sergey Staroverov, Deputy CEO for Economics and Finance of Setl Group. “The rating assigned by the ACRA agency shows the good prospects of this financial instrument and confirms the high level of the holding company’s creditworthiness and financial stability."

Setl Group is Russia's first development and construction company receiving ACRA's public rating: in June 2017, the holding company was assigned the BBB(RU) rating, with a "stable" outlook. The key factors of the rating were the same as they are now: high business profitability, strong liquidity and low debt burden (the debt burden of the holding company is characterized by a low ratio of the total debt to FFO before net interest payments, in 2014-2016 this indicator was within the range of 1.03-1,69x).

The ACRA Analytical Credit Rating Agency was established in 2015, its shareholders being the 27 largest companies in Russia, representing the financial and corporate sectors. ACRA’s main task is to provide a high-quality rating product to users of Russia’s rating market.