Standard & Poor’s upgrades of CJSC SSMO LenSpetsSMU long-term corporate credit rating to B+

30.07.2013

On 29 July 2013, Standard & Poor's Ratings Services raised the long-term corporate credit rating of CJSC SSMO LenSpetsSMU from ‘B’ to ‘B+’. The LenSpetsSMU short term credit rating affirmed at B. At the same time the national scale rating increased from ‘ruA’ to ‘ruA+’. The outlook is stable.

Standard & Poor’s noted that the rating action reflects an improvement in LenSpetsSMU’s capital structure due to lower levels of foreign currency and short-term borrowings, partly through a RUB 5 billion placement of Series 02 rouble bonds in December 2012.

LenSpetsSMU’s liquidity was classified as “adequate” according to Standard & Poor’s formal criteria. The rating agency expects that the company’s liquidity sources to meet needs by more than 1.2x in the next 12 months.

LenSpetsSMU’s Series 02 bond ratings were also upgraded from ‘B’ to ‘B+’ (international scale) and from ‘ruA’ to ‘ruA+’ (national scale); the recovery rating was confirmed is ‘4’.

Etalon Group CFO Anton Evdokimov said: “The upgrade was expected and fair, as it reflects the high credit quality and financial stability of the company. We will continue to work hard to strengthen LenSpetsSMU’s position. We are truly pleased that LenSpetsSMU has become the first construction company in Russia to obtain a ‘B+’ credit rating from any international rating agency.”

 

REFERENCE:

The current rating of CJSC SSMO LenSpetsSMU is B+/Stable/B; ruA+.

LenSpetsSMU is the first Russian construction company to receive and post credit ratings from Standard & Poor's, the largest and most stringent international rating agency.

 

CORPORATE CREDIT RATINGS HISTORY

22.12.2006

The rating as per international scale – ‘B’, outlook – stable, the rating as per national scale – ‘ruA-’ were assigned.

21.03.2007

The ratings as per the international scale (‘B’, outlook – stable) and national scale (‘ruA-’) were affirmed.

12.12.2007

The outlook as per the international scale was revised from «stable» to «positive».

The rating as per national scale was increased from ‘ruA-’ to ‘ruA’.

04.04.2008

The ratings as per the international and national scales were affirmed.

07.10.2008

The outlook as per international scale was revised from «positive» to «stable» due to the financial crisis and wider deterioration of the economy.

The rating as per the national scale was unaltered.

26.03.2009

The ratings as per the international and national scales were affirmed.

01.09.2009

Following the fulfillment of the major part of debt obligations being subject to redemption in 2009, the international and national scale ratings were affirmed.

11.12.2009

The ratings as per international and national scales were affirmed.

11.06.2010

The ratings as per international and national scales were affirmed.

19.11.2010

The ratings as per international and national scales were affirmed.

24.07.2012

The outlook as per the international scale was revised from «stable» to «positive».

29.07.2013

Long term credit rating was revised from  ‘B’ to  ‘B+’ with a stable outlook

The rating as per national scale was increased from ‘ruA’ to ‘ruA+’.


CONTACT DETAILS:

Mikhail Dukhovny

CCO +7 (812) 348-21-25

Mikhail.Dukhovny@etalongroup.com


Yana Yashchenko

Deputy CFO

+7 (812) 348-09-95

Yana.Yashchenko@etalongroup.com