Enter Engineering has confirmed that it has full funding to implement its current business strategy.
Enter Engineering, one of the largest EPC contractors in Uzbekistan, reports that Fitch Ratings, one of the world's leading rating agencies for analytics and research for international capital markets, has confirmed the company's credit rating at "B+", the outlook is "stable".
Fitch also noted that:
over the past year, Enter Engineering has increased the volume of contracts to be executed (that is, the cost of work that needs to be completed) from 4.4 billion US dollars to 4.9 billion US dollars, which is associated "with the further strengthening of the company's presence in the local market";
an increase in the total contract volume of work provides Enter Engineering with "good visibility of income and future cash flows, and also gives results that are well comparable with similar indicators of larger international companies";
Enter Engineering also has potential volumes of work on projects under development that have a "high chance of approval". Fitch notes that this will "strengthen Enter Engineering's leading position in the local market and provide some diversification of contracts."
Fitch expects Enter Engineering to receive working capital inflows in 2022, and that the expansion of Enter Engineering's portfolio of projects "should limit the volatility of working capital." This "will bring the debt burden to a level lower than that of a group of comparable companies."
Fitch forecasts 12% average annual revenue growth for Enter Engineering in the period from 2021 to 2024, while the EBITDA margin forecast will remain at about 12% by 2024.
In general, Fitch concludes that the financial profile of Enter Engineering can be defined as "solid".
Separately, Enter Engineering confirms that it has sufficient access to internal and private sources of financing for the implementation of the current business strategy and has no immediate plans to enter the capital markets. As a result, the company decided to withdraw the Fitch public rating.