Research Update: Russian Pump Maker HMS Outlook Revised To Stable From Negative On Successful Refinancing; 'B+' Rating Affirmed Jan 13
- Language: English
- Published: January 2013
- Region: Russia
The ratings on Russia-based pumps and oil and gas equipment manufacturer HMS Hydraulic Machines & Systems Group PLC (HMS) reflects Standard & Poor's Ratings Services' assessments of HMS' weak business risk profile and significant financial risk profile. The ratings are primarily constrained by HMS' narrow geographical diversification and the risk inherent in doing business in Russia, where the group derives around 90% of total revenues. An additional rating weakness is the execution risk HMS faces on the delivery of contracts. The group's lump-sum contracts leave it exposed to potential unexpected cost overruns. This risk is reinforced by HMS' concentration on some large contracts, such as the ESPO contract with OAO AK Transneft, which represented close to half of HMS' order...
Companies mentioned in this report are: HMS Hydraulic Machines & Systems Group PLC
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