S&P Upgrades RUSNANO’s Long-term Credit Rating to BB with Stable Outlook
The credit rating agency S&P has upgraded RUSNANO’s long-term credit rating to BB, with a stable outlook. The change follows the increase of the Russian Federation’s long-term credit rating on its foreign currency obligations from BB+ to BBB-.
S&P has also confirmed the company’s short-term credit rating at B. The assessment of the stand-alone credit profile (SACP) of RUSNANO remained unchanged at the level of b.
Among the factors that influenced S&P’s decision to increase RUSNANO’s rating was the growth of revenues from the sale of companies in its portfolio. In 2017, the company withdrew from eight investment projects. The internal rate of return on the projects was 7.4%. RUSNANO received cash proceeds from projects and funds in the amount of 23.2 bln roubles, as well as 4.1 bln roubles in highly liquid eurobonds. “We consider it to be a good thing that the amount of proceeds significantly exceeds the amount of investment in new projects (about 9.1 bln roubles). We also note that as of the end of 2017, for the first time since it started business, the company’s total proceeds from successfully selling its shares in projects (35 projects) slightly exceeded the amount of funding provided to those projects,” S&P remarks.
Boris Podolsky, Executive Director of RUSNANO Management Company: “The upgrade of the long-term credit rating reflects the financial stability of RUSNANO. We are confident that the revision will help us to implement further successful withdrawals from historical investment projects, and also to attract investors to new private equity funds managed by RUSNANO Management Company.”
RUSNANO Joint-Stock Company was founded in March 2011 through reorganization of state corporation Russian Corporation of Nanotechnologies. JSC RUSNANO contributes to implementation of the state policy on the development of the nanotechnology industry by investing directly and through investment funds of nanotechnology in financially effective high-technology projects providing the development of new production facilities in the Russian Federation. Its primary investment focus is in electronics, optoelectronics and telecommunications, healthcare and biotechnology, metallurgy and metalwork, energy, mechanical engineering and instrument making, construction and industrial materials, chemicals and petrochemicals. 100 percent of RUSNANO’s shares are state owned. Thanks to RUSNANO’s investments, there are currently 97 factories and R&D Centers opened in 37 regions in Russia. JSC RUSNANO has profit for the last 4 years.
Management of assets of RUSNANO JSC is carried out by Limited Liability Company established in December 2013, RUSNANO Management Company. Anatoly Chubais is the Chairman of its Executive Board.
Work to establish nanotechnology infrastructure and carry out educational programs is fulfilled by RUSNANO’s Fund for Infrastructure and Educational Programs, which was also established during the reorganization of the Russian Corporation of Nanotechnologies.