Yesterday Moody’s placed the corporate family rating (CFR) and the probability of default rating (PDR) for Sitronics, a Russian provider of corporate telecommunications solutions, on review for possible downgrade.
“Today’s rating action reflects Sitronics’ consistently weak performance, which has translated into a deteriorating liquidity profile with little likelihood of improvement in the short to medium term given the current capital structure and sizeable share of start-up projects in the company’s portfolio,” said Julia Pribytkova, Vice President-Senior analyst at Moody’s Eastern Europe and lead analyst for Sitronics.
The company reported $1,024 million in revenues and $101 million in operating income before depreciation and amortization (OIBDA) on a consolidated basis in 2009, $682.5 million in revenue and $50.8 million in OIBDA in first nine months of 2010.
Sitronics is a subsidiary of Sistema (“Sistema”, Ba3, stable). It comprises three core business divisions, namely Telecommunications Solutions, IT Solutions and Microelectronic Solutions.
Source: Moody’s
Update Apr 21, 2011
According to its audited results published last Thursday, Sitronics‘ consolidated revenues amounted to $1.17 billion in 2010 (up 14% year over year), including $323.6 million for IT (up 46%), $255.4 million for microelectronics (up 23%), and $525.9 million for telecommunications solutions (down 9%).
The company’s OIBDA reached $105.6 million with a margin of 9.1%, compared to $6.7 million in 2009. Net loss attributable to Sitronics was down 62% to $45.6 million.
Uralsib analyst Konstantin Belov found these results “moderately positive,” underlining the decreasing losses, but remained concerned about the company’s “debt level issue.”
Tatyana Zemtsova of Finam, a prominent Russian financial company, had a “moderately negative” opinion of the results, sharing Uralsib’s concern about the debt level and stressing that the losses are significant in absolute terms.
