The ACRA analytical credit rating agency has upgraded the credit rating of Artgen Biotech (MOEX: ABIO) to BBB- level according to the national rating scale for the Russian Federation, and the forecast is "Stable". The Artgen Biotech rating was first published by ACRA in March 2021.
An increase in credit rating is associated with an improvement in liquidity and debt servicing due to an increase in dividend and interest income and a reduction in the amount of debt and interest payable.
The agency noted an increase in the diversification of the investment portfolio in companies generating an incoming dividend flow for Artgen Biotech, and an improvement in the financial performance of the group’s main operating companies.
The debt of the Artgen Biotech group has decreased due to the repayment of previously existing loans and is currently mainly represented by a bond issue totaling RUB 300 million. According to ACRA calculations, the ratio of debt to market value of investments (LTV) is estimated at 0.3x, which corresponds to the average level of debt burden. A decrease in the absolute value of debt against the backdrop of an increase in dividend and interest income and a decrease in interest expenses contributed to an improvement in the debt service indicator.
ACRA notes an increase in the credit assessment of the group's main operating companies being assessed and an improvement in the diversification of dividend flows. Since 2022, the dividend flow began to come not only from Gemabank (International Medical Center of Biomaterials Processing and Cryostorage , MOEX: GEMA, ACRA rating - BB+ (RU), stable forecast), but also from Nextgen JSC, HSCI Pharma LLC and Reprolab LLC, in 2023 - from HSCI Ventures LLC.
Artgen Biotech includes companies at different stages of development - from the seed stage to the stage of early growth and maturity. Artgen is a strategic investor in industries that improve healthcare efficiency and quality of care.
As of today, shares of the following companies of the Artgen Biotech group are admitted to trading on the Moscow Exchange: Artgen (ABIO), Genetico (GECO) and Gemabank (GEMA). And the shares of the RBT company (RBTY) are traded on the over-the-counter market (Over The Counter, OTC) of the Moscow Exchange.
ACRA press release is available at the link.