S&P affirms Nizhnekamskneftekhim

Standard & Poor’s said it affirmed its BB- long-term corporate credit rating on Nizhnekamskneftekhim PAO (NKNK). The outlook is stable.

S&P also affirmed its ruAA- Russia national scale rating on the company.

S&P said the affirmation is based on S&P’s view of NKNK’s very low adjusted debt, which stood at RUB 8.6 billion at year-end 2014, down from RUB 9 billion-RUB 9.1 billion in 2012-2013, and the ratio of adjusted EBITDA to debt comfortably between 0.5x and 1.0x.

Additionally, at year-end 2014, NKNK reported a negative net debt position. “This improvement prompted us to change our assessment of NKNK's financial risk profile to ‘modest’ from ‘intermediate,’” S&P said in a news release.

“That said, we factor into our assessment the historically high volatility of NKNK's cash flows, largely fueled by changes in the price of chemical commodities,” the agency added.

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