Expert RA affirmed non-financial company credit rating on Seligdar and Seligdar Gold at ruA+ with stable outlook

Rating Agency Expert RA affirmed the credit ratings on PJSC Seligdar (MOEX: SELG, hereafter Holding, Seligdar or Group) and JSC Seligdar Gold, a company of the Seligdar Group, at ruA+ with stable outlook.

The Agency noted high operating margin and ability of companies to demonstrate strong financial performance; it estimates the prognostic liquidity figures as moderately positive. It stresses that the operating cash flow almost fully covers increasing Group’s dividend payments and capital expenditures even based on conservative gold price outlook. Expert RA also notes that the companies have moderately low market risks exposure. Besides, the agency positively assessed the corporate risks of Seligdar and Seligdar Gold because of high quality of strategic and corporate governance. Moreover, disclosure on Group’s material matters, annual and quarterly reports demonstrates high level of the Holding’s information transparency.

Besides, taking into account the Holding’s size the agency estimates the industry risk profile as moderately positive. Gold prices show positive dynamics within the last four years. Accommodative monetary policy of the developed countries attracted investors to gold and, thus, stimulated incremental commodity price growth. Gold turned out to be one of the few assets, which price reacted unambiguously positively to changing economic environment of the pandemic world. In 2020, the average gold price increased from US$1,393 per ounce to US$1,770 per ounce. During nine months of 2021, the average gold price was at the 2020 level, for the third quarter it comprised US$1,790 per ounce.

The full text of the Expert RA’s press releases on Seligdar and Seligdar Gold can be found on its website (in Russian).

2020 Annual Report (pdf, 9 Мб)
25.05 10:05
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