On September 28, 2009, Fitch Ratings assigned Russia-based Troika Dialog Group Limited (TDGL) a Long-term foreign currency Issuer Default Rating (IDR) of "B+" with a Stable Outlook.
The ratings assigned to TDGL reflect Troika Dialog’s good investment-banking franchise in Russia, currently low leverage, experienced management team and its good risk management. The ratings also factor in the current and prospective benefits from the company's partnership with Standard Bank Group (SBG), following SBG’s acquisition of a 33% stake in TDGL. In particular, Fitch views positively that, as a result of the deal, Troika Dialog has received a USD200m cash equity injection and a 100% stake in ZAO Standard Bank, leaving the firm with some USD300m of fresh equity.
Fitch views positively that Troika Dialog has managed to maintain its liquidity throughout this difficult market environment and, following repayment of a USD130m syndicated loan in July 2009, has no near-term debt maturities. After the USD200m cash injection from SBG and a significant reduction in the repo business, the company's liquidity has improved and now appears to have returned to historical levels. In a further positive note, Troika Dialog has recently secured a five-year USD150m unsecured loan facility from the European Bank for Reconstruction and Development (EBRD) which is currently mainly undrawn.
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Fitch's National ratings provide a relative measure of creditworthiness for rated entities in countries with relatively low international sovereign ratings and where there is demand for such ratings. The best risk within a country is rated "AAA" and other credits are rated only relative to this risk. National ratings are designed for use mainly by local investors in local markets and are signified by the addition of an identifier for the country concerned, such as "AAA(rus)" for National ratings in Russia. Specific letter grades are not therefore internationally comparable.
TDGL is the ultimate holding company of the Russia-based investment banking group Troika Dialog Group. Founded in 1991, Troika Dialog Group is the leading independent full service investment bank and asset management firm in Russia. The Group's business consists of securities sales and trading, investment banking, private wealth and asset management, retail distribution and alternative investment. Troika Dialog’s operations are located in 25 cities across Russia plus offices in London, New York, Kyiv, Almaty and Nicosia.