3 April 2008, Rating agency Fitch affirmed ratings of "Nizhnekamskneftekhim" INC: long-term Issuer Default Rating ("IDR") "B+", priority unsecured rating "B+" and short-term IDR "B". National long-term rating affirmed at "A(rus)". Long-term rating outlook changed from "Stable" to "Positive".
Change in the outlook reflects the opinion of Fitch in that "Nizhnekamskneftekhim" INC successfully implements its 2006-2010 Investment Program of $ 889m.
That important program is aimed to enhance integration, to secure savings given the scale and development of the deeper split product output (plastics, rubber and so forth). The finalized projects include the new Polypropylene Plant 180 Ktpa, Power Plant (GTU-75) and upgraded existing Polystyrene and Halobutyl Rubber Plants.
“Nizhnekamskneftekhim” INC ratings are maintained due the Company standing as one of the major petrochemical producers in Russia, its leadership in producing some types of goods, geographical diversification of proceeds and adequate profit-earning capacity.
In 2006, "Nizhnekamskneftekhim" INC proceeds grew by 12% to RUR 53.9bn at EBITDAR of 11.9%. As per the unaudited reporting for the 2007 first half-year, the proceeds amounted to RUR 32.5bn (on an annualized basis, a 20.7% growth compared to 2006). EBITDA equaled RUR 4.7bn, and EBITDA margin improved to 14.4% in the 2007 first half-year compared to 11.9 of 2006. A net debt/ EBITDA ratio reduced from 2.1x at 2006 year-end to 1.4x at 2007 first half year-end (on an EBITDA annualized basis) against the operating income and positive changes in circulating assets.