Moody’s affirms NCSP rating at Ba1 with stable outlook
Novorossiysk Commercial Sea Port (LSE: NCSP, RTS: NMTP, MICEX: NMTP) reports that international rating agency Moody’s Investor Service has published a Credit Opinion on NCSP and affirmed the Corporate Family Rating at Ba1 with a stable outlook.
«NCSP is expected to exhibit credit metrics that would be appropriate for ports in highly rated western European countries with credit ratings at least in the Baa rating category» [an investment level rating – NCSP comments] – Moody’s noted in the published document. “The current Ba category rating for NCSP reflects legal and regulatory frameworks of all Russian ports. One reason for this is the relatively low level of Russia’s integration into the international trade system,” NCSP Vice President for Corporate Finance and Investor Relations Roman Zinovyev added.
Moody’s also noted in the Credit Opinion that NCSP’s revenues are expected to grow materially over the next few months and years as volume increases at the Port of Novorossiysk and the addition of new port capacity will enable revenue growth, which will facilitate growth in cash flows that to a material extent will help finance the port’s investment program.
According to the Association of Sea Ports, NCSP (PJSC Novorossiysk Commercial Sea Port) is the largest Russian port operator in terms of cargo turnover. NCSP cargo turnover based on consolidated reports for 2007 totaled 79.4 million tonnes. NCSP is traded on the London Stock Exchange and Russia’s RTS and MICEX. NCSP earnings to IFRS for 2007 totaled $483.4 million, EBITDA totaled $227.9 million, and net profit totaled $93.7 million (according to consolidated financial reports).
NCSP is the largest stevedoring company operating at Novorossiysk, a deepwater ice-free multi-product port on the Black Sea that is essentially Russia’s southern sea gates for the export and import of a broad spectrum of cargo (including oil, petroleum products, timber, grain, fertilizers, ferrous metals, containers, automobiles, and other products). NCSP handled about 96% of the cargo at Novorossiysk port in 2007.
NCSP includes the following stevedoring companies: OAO Novorossiysk Grain Terminal, OAO Novorossiysk Shipyard, OAO NCSP Fleet, OAO Novoroslesexport, OAO IPP, and OOO Baltic Stevedoring Company.