Russia’s RusHydro may default at net debt/ EBITDA ratio of 3.5–4

MOSCOW, Mar 30 (PRIME) -- The possibility of default of Russian hydropower giant RusHydro will be high if its net debt/EBITDA ratio rises to 3.5–4 from the current 2.69, George Rizhinashvili, a member of the management board, said Wednesday at a conference.

“If the net debt/EBITDA ratio of the company exceeds 3.5 or 4 multiplier, probability of a default and cross-default on all company’s liabilities of about 130–140 billion rubles is very high, I am speaking about RusHydro,” he said.

According to RusHydro’s report under International Financial Reporting Standards (IFRS), the group’s earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 73.383 billion rubles in 2015, while the company’s debt amounted to 197.93 billion rubles.

In September 2015, RusHydro and Russia’s second biggest bank VTB signed an agreement to attract money to the company’s unit RAO ES Vostoka to optimize its structure and refinance the debt portfolio. The agreement envisages the bank’s purchase of RusHydro’s 85 billion ruble additional shares and a simultaneous signing of a 5-year forward contract.

(68.7549 rubles – U.S. $1)

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