Research Update: Zagrebacki Holding Ratings Lowered To 'BB-' On Weaker Liquidity And Lower Likelihood Of Support; Outlook Negative Nov 11
- Language: English
- Published: November 2011
High likelihood of extraordinary support from the owner, Croatia's capital city of Zagreb. Strategic role as a quasi-monopolistic provider of essential municipal services and financial arm to raise borrowings for the city investment program. Ongoing support from the city, including transfers earmarked for debt repayment. Highly leveraged financial profile due to fast debt accumulation in recent years and weakened liquidity. Low predictability of the financial policy. Exposure to volatile real estate and construction sectors. Rationale The ratings on Croatia-based Zagrebacki holding d.o.o. (ZH), a diversified conglomerate providing all essential municipal services in the City of Zagreb (BBB-/Negative/--), are based on Standard & Poor's Ratings Services' assessment of its stand-alone credit profile (SACP), which we assess at 'b', and on our...
Companies mentioned in this report are: Zagrebacki Holding d.o.o.
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Research Type: Full Analysis