The long-term corporate credit rating of CJSC SSMO LenSpetsSMU remains ‘В+’ level

19.06.2015

On June 18, 2015 the international rating agency Standard & Poor's affirmed long-term corporate credit rating of CJSC SSMO LenSpetsSMU (hereinafter – LenSpetsSMU) at 'B+' level. At the same time, the short-term corporate credit rating was affirmed at 'B' level and national scale rating was revised to 'ruA' level. All ratings were removed from the Credit Watch list. Outlook of the long-term corporate credit rating was revised from 'stable' to 'negative'.

Affirmation of the rating reflects the opinion of the agency that in the current economic environment LenSpetsSMU will maintain low exposure to currency risks, moderate maturities and debt leverage.

Outlook 'negative' according to the agency’s press release reflects the likely increase of working capital requirements and reliance on debt financing and decline in demand on residential premises in St. Petersburg. However, outlook can be revised to 'stable' if LenSpetsSMU will manage to fund its construction needs without excessive reliance on debt financing with a positive free operating cash flows while maintaining 'adequate' liquidity.

Standard & Poor's affirmed 'B+' issue level rating on LenSpetsSMU’s senior secured debt with revising the national scale rating on this debt from 'ruA+' to 'ruA'. The recovery rating on this debt was increased to '4' from '3' indicating agency’s expectations of meaningful recovery in line with the agency’s methodology.

Standard & Poor's updates the information on the levels of credit ratings on the official website of the agency.

REFERENCE:

The current rating of CJSC SSMO LenSpetsSMU is B+/Negative/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.

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’.

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.

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+’.

18.06.2015

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

Since 2006 Standard & Poor’s assigned rating to debentures ZAO TSUN (a part of LenSpetsSMU Group) and also issues of bonds of CJSC SSMO LenSpetsSMU (one of which (series 02 totaling RUB 5 bn) still in circulation).

CONTACT DETAILS:

Savchuk Ksenija Valer'evna

Head of Public Relations

+7 (812) 348-21-25

Kseniya.Savchuk@etalongroup.com

Yana Yashchenko

Deputy CFO

+7 (812) 348-09-95

Yana.Yashchenko@etalongroup.com