IBI-Rating has affirmed the credit ratings of «ODESAOBLENERGO» JSC and its bonds

Rating agency IBI-Rating informs on affirming of the long-term credit ratings of «ODESAOBLENERGO» JSC at uaBBB- grade, with a «stable» outlook. The credit rating of the interest-bearing secured B series bonds (nominal volume of the issue amount UAH 500 mln, with redemption in 2022) is affirmed at uaBBB grade, with a «stable» outlook.

«ODESAOBLENERGO» JSC is engaged in the electricity transmission and supply by local grids to consumers of Odesa region. The Company has the necessary licenses with an unlimited validity period to carry out the above-mentioned activities. «ODESAOBLENERGO» JSC is a natural monopoly in Odessa region in the transmission and supply of electricity at regulated tariffs, which ensures stable sales. By the results of first six months of 2018, the volume of productive electricity supplies to own consumers of «ODESAOBLENERGO» JSC decreased by 1.2%. The total amount of consumer indebtedness, compared with the beginning of the year, has decreased. The largest debtors remained the population and enterprises of the housing and communal services sector.

Net income of «ODESAOBLENERGO» JSC by 6 months of 2018 increased by 10.3%, as compared with the same period of the previous year, and amounting to UAH 4,231.3 mln. There was an increase in all major components of net income, the largest one remaining the electricity supplies to legal entities (accounting for about 68% of the total structure). The activity of «ODESAOBLENERGO» JSC by the results of first six months of 2018 was profitable - net profit amounted to UAH 87.4 mln.

The decline in the net debt of «ODESAOBLENERGO» JSC during January-June 2018 was at a faster rate pace compared with an decrease in the index EBITDA calculation, as a result of which the Issuer's debt load decreased in comparison with 2017, and is estimated as acceptable. The sensitivity to foreign exchange risk remains, due to the availability of foreign currency loans.

The Issuer’s keep need in considerable amounts of capital investments in renewal of fixed assets remains, given the need for constant upgrading of fixed assets according to the legislation of Ukraine.

n order to conduct the analytical research the materials provided by «ODESAOBLENERGO» JSC have been used, including: annual financial statements for 2015-2017 and 6 months of 2018, background information on the enterprise activities, parameters of the B series bonds issue, other necessary internal information, expectations of the Rating agency IBI-Rating, as well as the information from the public sources, which the Rating agency considers credible.

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