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Posted: June 4, 2009
RUSNANO Gets International Credit Rating
(Nanowerk News) At RUSNANO's request, Standard & Poor’s has issued international credit ratings for the Corporation. The Agency's Rating Service assigned a long-term BB+ credit rating, a ruAA+ Russian scale rating, and stated that the outlook is negative. Such a forecast for RUSNANO’s ratings reflects the outlook on Russia’s* sovereign rating and will depend on its dynamics in the future.
Receiving a credit rating is in line with an ongoing effort of RUSNANO to pursue a policy of transparency in interacting with financial institutes. Previously, RUSNANO introduced a treasury system for executing its budget for project companies and a public selection procedure for banks to provide idle cash and investable funds management and control. All this is aimed at expanding RUSNANO’s potential for attracting investors for projects in the nanoindustry, including credit and financial organizations.
To issue RUSNANO’s credit ratings, Standard & Poor’s accounted for RUSNANO’s financial highlights, such as income and expenses, debt level, investment plans, as well as potential financial support from the Russian Government.
Currently, RUSNANO’s level of liquidity is estimated as high. This figure may be revised, however, after the implementation of planned investments and the planned return of 85 billion rubles of idle cash to the Russian budget at the end of 2009. According to the CRA, it is because of this, as well as uncertainty in RUSNANO’s further funding that underlie the three-grade difference between the corporate and sovereign national currency debt ratings.
It is expected that RUSNANO’s funding for 2010-2014 will be provided by annual contributions from the Federal Budget. According to Standard & Poor’s, the amount of state appropriations as well as their timely nature will be essential in determining RUSNANO’s liquidity index and credit ratings.
* Russia’s foreign currency sovereign dept rating is BBB/Negative/A-3; national currency sovereign dept rating is BBB+/Negative/A-2