Ekotechnika GmbH: Creditreform adjusts rating outlook to “watch”
10 March 2014 Corporate News
Walldorf, 10 March 2014 – In view of the ongoing crisis in Crimea, the Ukrainian peninsula, Creditreform Rating AG has adjusted the rating of Ekotechnika GmbH from B (outlook: stable) to B (outlook: watch). Such adjustments were made for several companies which, like Ekotechnika, are active in Russia or Ukraine and which may be affected by potential sanctions or exchange rate affects resulting from the crisis.
From Ekotechnika’s point of view, the current political crisis in Crimea has so far not had any material impact on sales of international agricultural machinery. As explained in the press release dated 6 March 2014 – which was published on the occasion of Creditreform’s regular adjustment of Ekotechnika’s rating –, a depreciation of the rouble has both positive and negative impacts on the figures of Ekotechnika. The risk of trade barriers for foreign agricultural equipment is considered to be low at present. As a precautionary measure, however, the company has discussed measures with all major suppliers to maintain adequate inventories on the one hand and to be prepared for a possible drop in demand on the other hand. Above and beyond this, the current crisis has led to the Russian government attaching even greater importance to a functioning agricultural sector. At the end of 2013, German national Stefan Dürr, majority shareholder of Ekotechnika, was additionally granted Russian nationality by the President in recognition of his achievements for Russia’s agricultural industry. He maintains a regular exchange with political and economic decision-makers in order to secure positive conditions for the company’s business activities.