“National rating Agency has downgraded the credit rating of OOO “Financial center “Escada” to “BBB+” with “Stable” Outlook. The credit rating was first assigned to the company 14.10.2015 on the level of “A” with “Stable” Outlook. About this MFD-InfoCenter reported to the rating Agency.
Lowering the credit rating of the company due to failure to meet the stated strategy in terms of increasing equity capital, the shrinking volumes of business, with continuing low profitability.
Factors supporting the rating are the low level of liabilities on loans and borrowings, satisfactory liquidity ratios and consistently positive financial result.
According to the financial statements, the company assets of the company to 30.06.2016 G. was 1 041 million rubles and was formed mainly of accounts receivable and short-term financial investments. Equity capital of the company at the end of II quarter of 2016, almost unchanged compared to previous periods and amounted to RUB 104 million, despite a declared strategy to increase the share capital due to additional contribution in the amount of RUB 200 million the Level of capital adequacy ratio low – ratio of 0.1. In the structure of liabilities of the company dominated the payables and liabilities on credits and loans to 30.06.2016, amounted to only 2.6 million rubles.
The revenue base is formed by investment and interest income. For the first half of 2016, total revenue amounted to $ 1 364 million rubles, which is approximately at the same level as a year earlier (for the first half of 2015 – 1 400 mln.). Net profit of the company for 30.06.2016 totaled about 2 million rubles. the company’s Profitability is stable at a low level – at the end of the first half of 2016, the net margin was about 0.1%, return on equity of about 1.9% with a low absolute value of capital.
We will remind that open company “Financial center “Escada” carries out investment and financial activities. The revenue base of the company is formed by gains from transactions with securities and other financial instruments traded primarily in the OTC market.