OREANDA-NEWS. November 16, 2010. Moody’s Investors Service has today changed to stable from negative the outlook on the B2 long-term corporate family rating (CFR) of DTEK Holdings B.V. (“DTEK”).
 
Despite adverse macroeconomic developments in 2009, accompanied by a significant decline in electricity consumption, Moody’s notes that DTEK managed to preserve its solid financial performance and capitalise on the recovery in electricity consumption in 2010.
 
“The change of outlook to stable from negative reflects a combination of  DTEK’s solid financial performance, strong liquidity position and improved debt maturity profile; improved macroeconomic development in Ukraine; the stabilisation of the Ukrainian Hryvnia exchange rate; and an easing of pressure on the Ukrainian banking sector,” says Richard Miratsky, a Moody’s Vice President–Senior Analyst and lead analyst for DTEK.
 
Vsevolod Starukhin, DTEK CFO, noted: ‘The rating’s outlook change reflects confidence in DTEK’s ability to show positive trends in operational results despite turmoil economic conditions, its solid financial position and a more stable situation prevailing in both financial and real sectors of Ukrainian economy, including the power sector.”
 
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DTEK is the first private vertically-integrated power company in Ukraine. It is part of the financial and industrial group System Capital Management (SCM). The enterprises of DTEK build up an efficient operational chain of coal production and preparation, electricity generation and distribution.
 
The coal business of DTEK includes Pavlogradugol (consisting of ten coal mines), Komsomolets Donbassa Mine and five preparation plants. According to operational results for 9 months 2010, the Company’s share in the Ukrainian coal mining industry was 25.2%.
 
The power generation business of DTEK is represented by Vostokenergo and the associated Dniproenergo Company, where DTEK owns 47.55%. According to operational results for 9 months 2010, the combined share of Vostokenergo and Dniproenergo in total power generation of Ukraine was 25.8%.
 
Service-Invest,  PES Energougol  and the associated Donetskoblenergo Company, where DTEK owns 30%,  represent the electricity sales and supply business of DTEK. Their combined share of electricity purchase in SE Energorynok in 9 months 2010 made 14.2%.