S&P: OAO OMZ Ratings Suspended On Continued Delay In Releasing Fiscal 2007 Audit
FRANKFURT (Standard & Poor's) Dec. 23, 2008--Standard & Poor's Ratings Services said today it had suspended its 'CCC ' global scale long-term corporate credit rating and its 'ruBB' Russia national scale rating on Russia-based heavy-engineering holding company OAO OMZ (Uralmash-Izhora Group) (OMZ).
"This follows the continued absence and postponement of an estimated release date for the company's International Financial Reporting Standards (IFRS) audited financial statements for the fiscal year ended Dec. 31, 2007, and consequently its interim 2008 accounts," said Standard & Poor's credit analyst Varvara Nikanorava. "The delay creates uncertainty regarding the company's true financial condition, with an unknown effect on credit quality."
The last detailed consolidated financial information from the OMZ group was published following the quarter ended June 30, 2007. According to the company, the delay in release of the financial statements for full-year 2007 is technical in nature, due to first-time accounting for the joint venture with Metalloinvest, which the company entered into during 2007.
Standard & Poor's may suspend a rating in circumstances if there is an expectation that the rating is likely to be reinstated. The rating suspension does not imply that OMZ is not servicing its obligations, or that company operations have deteriorated, but rather that important information has not been provided by the company. We will likely reinstate the ratings on the company after public release and analysis of the audit of the annual 2007 and interim 2008 financial statements along with other information that we typically require to maintain the ratings.