Veles Capital credit rating outlook revised to stable on improved operating conditions; 'BB-/B' rtgs affirmed – S&P
26 May 2017
Standard & Poor’s International Rating Agency revised Veles Capital’s outlook to stable from negative. At the same time, S&P affirmed 'BB-/B' long- and short-term counterparty credit and 'ruAA-' Russia national scale ratings of the company.
"The outlook revision reflects our view that Veles Capital will be able to maintain its strong capital position, low risk appetite, appropriate risk-management practices, and high liquidity cushion. Our decision to revise the outlook is also supported by our view that economic risks and operating conditions in Russian financial markets have stabilized", said S&P analysts.
"In 2016, Veles Capital kept its leading positions on the Russian fixed-income market.
Veles Capital operating revenues in 2016 mirrored the decline in trading volumes, specifically following depressed activity in the local promissory note segment. We expect, however, that in 2017 Veles Capital will improve its trading revenues, supported by recovery of market flows in the Russian bond market, despite still depressed volumes in the promissory note segment", noted in press-release.
"In our view, Veles Capital will maintain its sizable liquidity cushion and focus on highly liquid securities, which support the broker's strong liquidity profile. We think that the Veles' strong funding profile will be supported by a large share of capital in its funding mix and lack of short-term public debt" S&P experts noticed.
Veles Capital is one of the oldest investment companies in Russia. It was founded and managed since 1995 by Dmitry Bugaenko and Alexei Gnedovsky. Veles Capital is one of the few Russian investment companies with an international credit rating.
By the end of 2016, the company entered the top-10 Moscow Exchange operators with client deals turnover exceeding 4 trillion rubles.
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