Eurotorg has become the first non-Russian company to be assigned a credit rating by Russian rating agency; the Company was assigned ’byA+’ credit rating
Eurotorg LLC (the ”Company“), the largest food retailer in Belarus, announces that the leading Russian rating agency Expert RA has assigned ‘byA+’ long-term credit rating to the Company, the outlook is stable. Eurotorg has become the first non-Russian company to be assigned a credit rating by the Russian rating agency.
Expert RA rating agency also assigned ‘ruA-‘ credit rating to the expected Russian ruble-denominated bond issue. The outlook is stable.
The CEO of the Company Andrei Zubkou said: “Eurotorg has become the first ever foreign company to be assigned a credit rating by the Russian rating agency. We appreciate the high rating achieved on par with the leading Russian companies such as M.Video and JSFC Sistema.
“The assigned rating confirms solid potential of our capex-light growth strategy with focus on opening of smaller formats in leased premises. This strategy enhanced our cash flows, which enabled the Company to grow further while also strengthening its financial position. We opened more than 450 stores since 2016 but still were able to achieve significant results in deleveraging. The Company reduced net debt from USD 668 mn as of the end of 2015 to USD 497 mn as of the end of 2018. During this period Net Debt/EBITDA ratio decreased from 5.6x to 2.75x. We expect that in 2019 we will sell some hypermarkets and allocate the funds attracted to reduce debt. This will allow us to continue deleveraging and stabilizing financial position.
“Following the first successful step, i.e. the issue of Eurobonds, Eurotorg continues to be Belarussian based pioneer in international capital markets. High rating from the Russian rating agency provides strong opportunities to succeed in attractive Russian fixed-income market.”
The release on rating assigned to the expected Russian ruble-denominated bond loan of the Company can be found here.
The release on rating action on Eurotorg LLC can be found here.