LONDON--(BUSINESS WIRE)--
HMS Hydraulic Machines & Systems Group plc
(the “Company”, and together with its subsidiaries, the “HMS Group”)
S&P revises HMS Group corporate rating
HMS Group (LSE: HMSG), the leading pump and compressor manufacturer, supplier of turnkey process engineering packages and provider of flow control solutions and related services in Russia and the CIS, announces that Standard & Poor’s Rating Services downgraded the long-term corporate rating of the company from “B-“ to “CCC” and kept it on CreditWatch with negative implications.
According to S&P, this action reflects near-term refinancing risks arising from the Rub 2.1bn unsecured bond maturity in February 2015. The agency believes that there is a risk of a default due to challenging financial market conditions in Russia unless HMS is able to attract financing or source additional liquidity. Also, in S&P’s opinion refinancing risks are coupled with the company’s weak operating environment.
Currently HMS Group is at negotiation stages with a number of banks, has some liquidity cushion and continues to collect funds for bond repayment as well.
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HMS Group is the leading pump and compressor manufacturer, as well as provider of flow control solutions and related services to the oil and gas, nuclear and thermal power generation and water utilities sectors in Russia and the CIS. HMS Group’s products are mission-critical elements of projects across a diverse range of industries. It has participated in a number of large-scale infrastructure projects in Russia, including providing pumps and modular equipment to the Vankor oil field and pumping stations on recent trunk pipelines projects linking Russia’s core oil producing areas to export ports on the Pacific Ocean and Baltic Sea. HMS Group’s global depositary receipts (“GDRs”) are listed under the symbol “HMSG” on the London Stock Exchange.
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Disclaimer
The information contained herein has been prepared using information available to HMS Hydraulic Machines & Systems Group Plc (“HMS Group” or “HMS” or “Group” or “Company”) at the time of preparation of the presentation. External or other factors may have impacted on the business of HMS Group and the content of this presentation, since its preparation. In addition all relevant information about HMS Group may not be included in this presentation. No representation or warranty, expressed or implied, is made as to the accuracy, completeness or reliability of the information.
Any forward looking information herein has been prepared on the basis of a number of assumptions which may prove to be incorrect. Forward looking statements, by the nature, involve risk and uncertainty and HMS Group cautions that actual results may differ materially from those expressed or implied in such statements. Reference should be made to the most recent Annual Report for a description of the major risk factors. This presentation should not be relied upon as a recommendation or forecast by HMS Group, which does not undertake an obligation to release any revision to these statements.
This presentation does not constitute or form part of any advertisement of securities, any offer or invitation to sell or issue or any solicitation of any offer to purchase or subscribe for, any shares in HMS Group, nor shall it or any part of it nor the fact of its presentation or distribution form the basis of, or be relied on in connection with, any contract or investment decision