ACRA affirms Evropeyskaya Elektrotekhnica's credit rating at the BBB-(RU) investment level, with a stable outlook

ACRA affirms Evropeyskaya Elektrotekhnica's credit rating at the BBB-(RU) investment level, with a stable outlook

January 30, 2020. Moscow — The Analytical Credit Rating Agency (ACRA) affirmed PJSC Evropeyskaya Elektrotekhnica's (hereinafter, the "Company" or "Group") credit rating at the BBB-(RU) investment level, with a stable outlook. The credit rating was assigned according to the national scale for the Russian Federation.

The credit rating level is due to the Company's good profitability, high debt coverage and liquidity amid low debt load.

Sergey Dubenok, Head of the Board of Directors of PJSC Evropeyskaya Elektrotekhnica, commented on the event: "ACRA's approval of our credit rating at the investment level is proof of the high transparency of Evropeyskaya Elektrotekhnica's activities for the rating agency and investor community. ACRA's assessment is also clear evidence of the Company's sustainable business reputation both for our suppliers and customers who use our design solutions and comprehensive services.

Regular careful monitoring of all our business aspects by ACRA's analysts and a positive history of growth with regard to our rating build confidence in our business prospects and creditworthiness from the banks' perspective.

Currently, the Russian bond market is providing very attractive conditions for borrowing long-term financial resources at appropriate rates. We can use these market opportunities to implement projects in the sphere of Engineering Systems and Process Systems.

ACRA's analysts took into account the positive dynamics of profitability indicators and operational results of our Company. We continue to take a conservative approach to borrowings. As of September 30, 2019, in accordance with IFRS financial statements, the Net debt/12M EBITDA ratio was at a low level of 0.29, which is comfortable for the Company."

The full text from ACRA's press release can be found here.

About Evropeyskaya Elektrotekhnica Group of Companies

• Evropeyskaya Elektrotekhnica Group of Companies (MOEX: EELT) offers comprehensive solutions in the field of engineering and technological systems for industrial, construction and infrastructural purposes: low and medium voltage distribution equipment, low current systems, lighting systems, industrial electric heating systems and equipment for the Oil&Gas and petrochemical industries.

• As a Russian joint-stock company with high corporate governance standards and financial sustainability, the Company's Mission is to improve people's quality of life with its entrepreneurial vigour and engineering competencies.

• The Company was founded in 2004 and unites a distribution center, engineering departments, an electrical laboratory and specialized production facilities. The company is one of the largest electrical equipment distributors in the Russian Federation and an industrial partner of leading companies on the international engineering market.

• The Company's logistics capabilities include delivery (including non-standard and oversize load) to customers throughout Russia, including hard-to-reach Northern areas, as well as to Central Asia, North Africa and the Middle East.

• The Company has its own production of the following equipment:

• Complete transformer substations;

• Medium voltage units;

• Low voltage panels of up to 6,300A (including metro solutions);

• Electric lighting systems;

• Industrial electric heating systems;

• Cabling and wiring products.

• Areas of application of the Company's competences:

• Oil&Gas industry;

• Electric power sector;

• Peaceful atom,

• Steel and mining industry;

• Engineering;

• Transport infrastructure, water supply and sanitation.

• Evropeyskaya Elektrotekhnica's customers include major Russian companies: Rosneft, Gazprom, NOVATEK, LUKOIL, Sibur and Nizhnekamskneftekhim. Supplies were successfully implemented for the following projects: Power of Siberia, Yamal LNG, Smolensk NPP, Data Center of Sberbank of Russia, the Domodedovo, Sheremetyevo, and Pulkovo Airports, etc.

• New areas of Company activity starting from 2018 include development and production of the following:

• Modular equipment for the Oil&Gas and petrochemical industries (Company subsidiary ROG-Engineering, Ufa, Republic of Bashkortostan, Russian Federation);

• Industrial specialized solutions for metro substations (currently being consolidated into the Group's structure: Metrotonnel, Moscow, Russian Federation);

• Industrial electric heating systems.

• Key financial indicators of PJSC Evropeyskaya Elektrotekhnica (IFRS):

350 people – the personnel headcount. 

EELT – the trading code for common shares of PJSC Evropeyskaya Elektrotekhnica on the Moscow Exchange, where shares are traded since September 2017. 

BBB- (RU), stable outlook – the credit rating of PJSC Evropeyskaya Elektrotekhnica is at the investment level; the rating confirmed by ACRA on January 30, 2020. 

Contacts:

PJSC Evropeyskaya Elektrotekhnica

Tel.: +7 (800) 600-71-18

Mailing address: 1 Lyotchika Babushkina Street, Building 3, Moscow, 129344

For more information, please contact:

Stanislav Martyushev

Director for Corporate Communications and Investor Relations

PJSC Evropeyskaya Elektrotekhnica

Tel. +7 (495) 660-71-18 ext. 164

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