Credit rating rationale. The issue represents senior unsecured debt of Borets Capital LLC (the Issuer), a 100% subsidiary of Tangent Pump Company Holdings Ltd. (TPCH, or the Group, rated by ACRA at A+(RU), outlook Stable). The credit rating is based on a surety from Borets PC LLC, the Group's main operating and production company. In accordance with ACRA’s methodology, the Agency applied a detailed approach to determine the credit rating. According to ACRA's estimates, the recovery rate on the senior unsecured debt belongs to category II, therefore, the credit rating of the issue is equivalent to that of the Group and is set at A+(RU).
The credit rating of the Group is based on its very strong business profile, which takes into account the stable contact base and low dependence on subcontracting and components, as well as strong geographic diversification and corporate governance, and medium market position. The financial risk profile assessment is based on the very high profitability, strong assessments of liquidity and coverage, as well as medium assessments of leverage, cash flow, and the size of TPCH.
TPCH is a vertically integrated company that operates in the field of oil engineering. It specializes in developing, manufacturing, and servicing oil production equipment. The product range includes electric centrifugal and screw pumps, as well as horizontal pump units. The Russian Federation is the Company’s primary market. In addition, countries in the Middle East, North Africa and North America account for significant shares of the revenue structure.
Key issue properties
|
Borrower |
Tangent Pump Company Holdings Ltd. |
|
Issuer’s credit rating |
A+(RU), outlook Stable |
|
Actual issuer |
Borets Capital LLC |
|
Type of security |
Uncertificated non-convertible interest-bearing bond subject to centralized title registration, series 3O-2026 |
|
Issue volume |
USD 21,050,000 |
|
Reg. No. |
4-01-00676-R |
|
ISIN |
RU000A105GN3 |
|
Placement start date |
November 21, 2022 |
|
Maturity date |
September 17, 2026 |
Source: ACRA, issuer’s data
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Financial Instruments on 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.
A credit rating has been assigned to the series 3O-2026 bond (RU000A105GN3) of Borets Capital LLC for the first time. The credit rating is expected to be revised within one year following the publication date of this press release.
The credit rating was assigned based on data provided by Tangent Pump Company Holdings Ltd., information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Tangent Pump Company Holdings Ltd. 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 Tangent Pump Company Holdings Ltd. No conflicts of interest were discovered in the course of the credit rating assignment.
