Aeroclub assigned a BB+ credit rating

The credit rating agency “National Credit Ratings” (NKR) has assigned Aeroclub JSC a credit rating of “BB+” (RU) with a stable outlook. The assessment was based on factors such as the financial and business profile of the company, management and beneficiaries, as well as environmental conditions.

«Aeroclub» has been assigned a credit rating «BB+»

The official release of the NKR agency emphasizes that the current assessment of Aeroclub and a stable forecast for the future of the company are based on its “leading position in the business travel market due to competitive advantages in the field of IT technologies and established relationships with large Russian and international companies.” The experts also noted Aeroclub's positive business reputation, transparent business history, high level of corporate governance and business automation. Among the negative factors, the authors of the rating pointed to the volatility of the business tourism market, which in recent years has affected the volume of Aeroclub's operating activities.

“We have long planned to obtain an independent assessment of the financial stability and transparency of the company: for this, all the necessary corporate procedures were completed, regulations were observed, over the past four years the company has submitted reports in accordance with international IFRS standards. And we are proud that in such a difficult, turbulent time, Aeroclub became the first company on the Russian business travel market to be assigned a credit rating. This is a guarantee that we have successfully overcome all crises, a kind of measure that puts us on the same level with well-known public companies. Now we are ready to take the next step – to enter the stock exchange with bonded loans in order to diversify the loan portfolio for even greater stability of the company, investment in new projects and technologies and business growth,” commented Denis Matyukhin, founder and CEO of Aeroclub.

According to the NKR agency, the Russian business travel market is fragmented and characterized by increased volatility due to exposure to external shocks. Aeroclub holds a leading position in it and provides a full range of services for organizing business trips and holding corporate events for corporate clients in Russia and abroad. The company's revenue is formed by income from booking hotel rooms (40%), air and railway tickets (15%), as well as corporate events (43%). NKR experts noted that in 2021 the market moved to a gradual recovery and reached about 70-80% of the pre-pandemic turnover, while the turnover of the Aeroclub group of companies amounted to 24 billion rubles. OIBDA margin last year recovered to 12.8% (according to management accounts) from 5.4% a year earlier. Significant difficulties in international air traffic and a decrease in transactions of foreign corporate clients are considered by analysts as a deterrent to the development of the company's presence market in 2022. Nevertheless, one of Aeroclub's competitive advantages is its own software products that allow automating and accelerating business processes for working with clients, and the company is currently developing an IT block for the purpose of monetization. The assessment of the financial profile takes into account the recovery period of operations after the pandemic and the risks associated with the current significant deterioration in the business travel market and the economy. The turnover of the first quarter of 2022 is 87% of the level of the pre-pandemic 2019 and is 1.5 times higher than in 2021, which indicates the continued recovery of the company's presence markets.

The official credit rating will become the guarantor of Aeroclub's securities and will help potential investors get information about the reliability of the company as quickly as possible, without plunging into its detailed financial analysis.


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