The credit rating of Rosseti Volga, PJSC (hereinafter referred to as the Rosseti Volga, the Company) derived from the Company's monopoly market position in the regions where it operates, its extremely low debt burden, adequate business profitability and good liquidity. The rating is restrained by a relatively low level of socio-economic development in a number of served regions, which determines the emergence of regulatory risks and negative free cash flow. The credit rating is supported by the high probability that the Company will receive extraordinary assistance from its key shareholder, Rosseti, PJSC.
Rosseti Volga is an infrastructure monopoly that supplies electricity to the Saratov, Samara, Ulyanovsk, Orenburg and Penza regions, as well as the Republic of Mordovia and the Chuvash Republic. The company consistently demonstrates good financial performance, therefore, as a rule, it does not need additional financial assistance from shareholders. However, cases of support of other subsidiaries and affiliates by Rosseti indicate a high probability of rendering assistance to the Company if such a need arises.
The economic development of the constituent entities of the Russian Federation in which Rosseti Volga operates and the income of the main consumers allow the Company to set tariffs at a level that ensures sufficient business profitability.
The full content of materials published by ACRA can be found on the official website of the rating agency https://www.acra-ratings.ru/about/news/1732.