9th Dec 2016 11:41
HMS Group IR Release
Moscow
December 9, 2016
HMS Hydraulic Machines & Systems Group plc
(the “Company”, and together with its subsidiaries, the “HMS Group”)
Fitch Assigns HMS Group Rating of “B+” and Stable Outlook
Moscow, Russia – December 9, 2016 - HMS Group (LSE: HMSG) announces today that Fitch Ratings assigns JSC HMS Group (legal entity, the holder of HMS Group’s assets, located in Russia) a first time Foreign and Local Currency Issuer Default Rating (IDR) of “B+”, the outlook “Stable”.
In its press-release the rating agency specifies the following key rating drivers:
Strong market position: The company is the market leader in Russia in two of its three main business segments – pumps and oil & gas equipment; Oil production resilience expected: Fitch’s base case assumes that Russia’s current oil production levels will be maintained and that Russia will remain a key global exporter of crude and oil products; No foreign exchange exposure: The company is not exposed to FX rate risk, as all debt, revenues and costs are denominated in Russian roubles; Compressor business more volatile: According to the agency, the volatility of this business is likely to be high due to its high exposure to large contracts, but currently this is not a concern given the fairly small contribution of the segment to HMS’ revenues; Share of aftermarket services low: These services contribute to a very low proportion of revenues due to the fact that customers usually have their own maintenance service divisions.Fitch views the liquidity position of HMS Group as adequate.
Mr. Artem Molchanov, Managing Director (CEO) of HMS Group, commented:
“ We are pleased that Fitch appraised strong sides of the company, our leading market position and a healthy level of margins and leverage. Our good relationships with Russia’s top banks allow us to have a diversified credit portfolio and an easy-to-handle debt repayment schedule. The management is committed to maintaining Net debt/EBITDA LTM at the level lower than 2.5x. We will follow our conservative financial policy going forward.”
The full text of Fitch’s press release is available on the agency’s website https://www.fitchratings.com/site/pr/1016199.
For more information, please, contact:
Inna Kelekhsaeva, Deputy Head of Capital markets, on telephone: +7 (495) 730-6601 x 1318, or email: [email protected]
Anna Obotnina, Head of Marketing communications, on telephone: +7 (495) 730-6601 x (600)3304, or email: [email protected]
About HMS Group
HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services for the oil and gas, petrochemistry, nuclear and thermal power generation, water and wastewater sectors in Russia and the CIS headquartered in Moscow, Russia. HMS Group’s products are mission-critical elements of projects across a diverse range of industries. HMS has a listing on the London Stock Exchange in the form of global depositary receipts (LSE: HMSG).
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