The “Rating under review: negative” status has been assigned to the credit rating of Elektroresheniya LLC (hereinafter, EKF or the Company) due to the adoption of provisional measures under a lawsuit filed by the Federal Tax Service and the seizure of the Company’s funds within the limits of the lawsuit.
The current credit rating — BBB(RU) — is based on the Company’s very high profitability, medium leverage coupled with medium coverage, strong liquidity, medium assessments of the market position, business profile, corporate governance and geographic diversification, as well as the weak cash flow and smaller-than-medium size of the Company.
Elektroresheniya LLC, the representative of the EKF brand in Russia, is engaged in the design, production and sale of electrical equipment and associated solutions, and software. Its product range includes over 19,000 items in 36 product lines, including smart home systems, professional lighting equipment, electricity meters, low-voltage electrical products and medium-voltage equipment, heating systems, etc. The Company’s manufacturing assets include two production sites in the Vladimir Region, a state-of-the-art test laboratory, a design bureau, and seven logistics centers. The Company has more than 2,000 employees.
potential outlook or rating change factors
The “Rating under review: negative” status assumes that the rating may be downgraded.
Removal of the “Rating under review: negative” status and affirmation of the credit rating may be prompted by:
-
Withdrawal of the lawsuit;
-
Maintaining the assessments of financial risk profile factors in the event of satisfaction of claims under the lawsuit.
Removal of the “Rating under review: negative” status and downgrading the credit rating may be prompted by:
- Deterioration of the assessments of financial risk profile factors, including due to satisfaction of claims under the lawsuit.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): bbb.
Support: none.
ISSUE RATINGS
No outstanding issues have been rated.
REGULATORY DISCLOSURE
The credit rating has been assigned to Elektroresheniya LLC under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating of Elektroresheniya LLC was published by ACRA for the first time on October 20, 2021. The credit rating and its outlook are expected to be revised by April 5, 2025.
The credit rating was assigned based on data provided by Elektroresheniya LLC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and Elektroresheniya LLC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to Elektroresheniya LLC. No conflicts of interest were discovered in the course of credit rating assignment.
