The rating agency RAEX (Expert RA) has evaluated the credit rating of Gazprom-Media Holding, the leading diversified media holding in Russia and Eastern Europe, as ruA- with the rating outlook labelled as “stable”.

The rating agency noted that the Holding’s owner Gazprombank Group has increased the Holding’s capital, which had a positive influence on the rating. As a result, the Holding’s capital grew to 108 billion rubles, according to agency estimates.

The agency evaluated the growth of the advertising market in 2018 at 10% in monetary terms and noted that TV advertising was the quickest growing business segment of the Holding. Further growth of this segment is expected in 2019, which allows the rating agency to evaluate the market potential as moderately positive. The agency also noted that the Holding’s profitability indicators will continue to improve thanks to the growth of the TV advertising market.

Experts expect that the the level of forecast liquidity will remain stable over the next year and a half due to the general growth of the advertising market and a decrease in the Holding’s debt obligations.

Gazprom-Media Holding’s assets added up to 205 billion rubles as of September 30, 2018, while its own capital was 106 billion rubles, according to consolidated financial statements that were compiled in accordance with International Financial Reporting Standards (IFRS).

The revenues of Gazprombank’s Media-Business segment, which includes Gazprom-Media Holding, increased by 11% from January to September 2018 to reach 67.7 billion rubles with a net profit of 5.9 billion rubles.