Fitch B+ rating for United Cement Group
Fitch Ratings has awarded a B+ rating to United Cement Group (UCG). The positive outlook by the rating agency is due UCG’s large-scale modernisation as well as with an increase in profitability. The recent acquisition of construction glass producer Kvarts by UCG is also expected to lead to ongoing improvements in product diversifiaction and strengthening of financial stability. Moreover, the integration of Kyzylkumcement is anticipated to increase operating profitability.
According to Fitch, UCG holds a “confident position in the dynamically developing cement market of Uzbekistan and Central Asia, being a serious competitor for existing and potential players in this sector. Integration of cement enterprises into UCG holding considerably raises its stability and reduces potential risks. The strategic task of the holding is to carry out a comprehensive modernisation of its enterprises in order to increase energy efficiency, reduce fuel and energy costs, introduce green technologies, upgrade and replace equipment in accordance with international standards.”
The positive outlook by the rating agency is due UCG’s large-scale modernisation as well as with an increase in profitability. The recent acquisition of construction glass producer Kvarts by UCG is also expected to lead to ongoing improvements in product diversifiaction and strengthening of financial stability. Moreover, the integration of Kyzylkumcement is anticipated to increase operating profitability.
The B+ rating by Fitch follows the same rating by S&P Global Ratings at the end of 2022 and confirms again UCG’s key role in the Uzbek economy and central Asian cement market, according to UCG.
"Fitch rating is the second positive assessment of United Cement Group positions by international rating companies for the last time, says Serik Ukanov, CEO of UCG holding. “In their report, Fitch Ratings analysts confirmed not only the financial stability of our holding, emphasizing the strong results that we managed to achieve despite all the difficulties and challenges, but also our future growth opportunities."
