​RAEX (Expert RA) upgrades Gazprom-Media’s rating to ruA level
28 April 2018

Gazprom-Media Holding, the leading diversified media holding in Russia and Eastern Europe, announced that the rating agency RAEX (Expert RA) upgraded its credit rating to level ruA-. The outlook on the rating is “stable.” The holding previously had a ruBBB+ level rating with a positive outlook.

The holding’s capitalization by the owner contributed to the upgrade in the rating level. The rating agency noted improvements in the holding’s profitability indicators in 2017, including a decrease in the amount of net loss, increase in profitability according to EBITDA, as well as the money the holding earned from advertising services. The analysts also noted a low level of debt burden and the high likelihood of the owner supporting any debt obligations.

The rating level was also positively affected by the holding’s independence from the largest counter parties in the revenue and cost structure, the diversification of its activities in broadcast geography and business areas, and the high quality of corporate governance in terms of strategic planning and risk management.

Experts forecast an increase in the level of liquidity of the holding in the next 1.5 years due to the general growth in advertising services and the expected arrival of the first proceeds from the implementation of new projects.

According to consolidated financial statements under IFRS standards, Gazprom-Media Holding’s assets as of 31.12.2017 were 193.2 billion rubles, the capital - 98.8 billion rubles. The revenue of the Media Business segment of Gazprombank, in which Gazprom-Media is represented, was 86.4 billion rubles in 2017.

RAEX (Expert RA) is the largest rating agency in Russia with a 20-year history. RAEX is a leader in the field of rating, as well as research and communication activities. It is included in the register of credit rating agencies of the Central Bank of Russia.