Expert RA updates credit rating of United Wagon Company using new scale

PJSC “Research and Production Corporation “United Wagon Company” (“RPC UWC”, or “Company”) (MOEX: UWGN), the market leader in innovative railcar building in the 1520 mm gauge area, has been awarded a credit rating at ruBB with stable outlook by Russia’s Expert RA rating agency. The rating matches the A (III) rating with stable outlook, which Expert RA already assigned to the Company under its previous rating scale.

Expert RA said that the Company's strong market positions and good prospects for rolling-stock manufacturers in Russia had positive impact on the rating. The Agency also noted significant growth of the Company's order book and diversification of its customer base in 2016.

Pavel Mitrofanov, Managing Director for Corporate and Sovereign Ratings at Expert RA, commented:

"The Agency was impressed by the financial results, which United Wagon Company achieved in 2016. Significant increase in sales of railcars led to growth of operating cash flows and improved both debt coverage and margins. The Company is also working successfully with lenders to refinance current debt liabilities, which should have positive impact on liquidity in the future."

The Agency's analysts commended the high level of information transparency at the Company, and the quality of its strategic planning, corporate governance, and risk management.

Detailed information on the rating can be viewed in the Expert RA press release at (in Russian).