Fitch rates Eurotorg “B-(EXP)”; proposed notes “B-(EXP)”
Minsk, 6 October 2017 – Eurotorg today announces that Fitch Ratings has assigned an expected Long-Term Issuer Default Rating (IDR) of “B-(EXP)” to Eurotorg LLC and an expected “B-(EXP)”/“RR4” to Eurotorg's proposed five-year loan participation notes (LPNs) due in 2022. The outlook on the ratings is “Stable”.
Eurotorg has become the first corporate issuer in Belarus to be assigned a credit rating by Fitch. At the moment, the rating is on par with Belarus’ sovereign rating.
Fitch noted the company’s “strong business profile, underpinned by the company’s unrivalled position in Belarusian food retail market, limited entry threat from international chains, solid profitability and some growth opportunities arising from the low penetration of modern retail in the country”.
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Eurotorg is the largest grocery retail chain in Belarus, with a market share of 19% (2016). The Company’s business was established in 1993 in Minsk. Today Eurotorg operates 460 stores under the Euroopt and Brusnichka banners in several formats (hypermarkets, supermarkets and convenience stores).
The Company’s strategy, based on offering a focused assortment of high turnover products at market-leading prices, delivers a value proposition that is well-tuned to the needs of Belarusian consumers. Every day about 900,000 customers make purchases at Eurotorg stores across 123 cities and towns in Belarus.
In 2016, the Company reported revenue of BYN 3.64 billion (USD 1.83 billion based on the average National Bank of Belarus exchange rate for 2016).
A brief video about Eurotorg’s business can be viewed here.