JSC “ROSGEOLOGIA” HAS AN A-(RU) CREDIT RATING, OUTLOOK NEGATIVE; THE SERIES 01 (RU000A103SV6) BOND ISSUE OF JSC “ROSGEOLOGIA” HAS AN A-(RU) CREDIT RATING
On July 30, 2024, the holders of the series 001P-02 (RU000A107AX1; no ACRA rating) bonds of JSC “Rosgeologia” (hereinafter, Rosgeo, or the Company) received the right to demand early repayment of the bonds due to failure to meet the financial covenants of this bond issue.
According to the Company:
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It is currently carrying out measures necessary to meet the previously violated covenants of the bond issue. It is planned that by the end of the current year the previously violated covenants will be fulfilled;
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A preliminary agreement has been reached with the holders of the full amount of the bond issue on their intent to waive the right to early repayment.
In ACRA’s opinion, the current credit rating of Rosgeo and its outlook fully reflect the situation related to the Company’s operations.
On May 27, 2024, ACRA downgraded the Company’s credit rating from A(RU) to A-(RU) and changed the credit rating outlook from Stable to Negative due to the deviation of the Company’s financial performance for 2023, as reflected in the annual IFRS statements, from the previous forecast, as well as more conservative expectations of the Company regarding its financial performance in 2024–2026. According to Rosgeo, these changes are associated with a redistribution of revenues generated by the Company’s core segments. In 2023, revenues from parametric drilling, as well as from marine operations, the most profitable segment, decreased due to a decline in government contracts for this work and lower demand for offshore operations from commercial customers. On the backdrop of this decrease, the Company’s costs of ship and drilling equipment downtime and the costs of eliminating geological complications increased.
