Ratings agency Fitch Ratings maintains Eurotorg’s credit rating
Eurotorg LLC (“Eurotorg” or the “Company”), the largest grocery retailer in Belarus, announces that on 9 September 2022 international ratings agency Fitch Ratings (Fitch) has maintained the Company’s Long-Term Issuer Default Rating of ‘B–’ with Negative Outlook.
The agency cited that relative resilience of the food retail sector to economic crises could mean some insulation to external shocks, while Eurotorg has a conservative capital structure and a strong position in Belarus's food retail market.
At the same time Fitch noted that possible imposition of additional sanctions against Belarus and its corporates might affect Eurotorg’s access to payment infrastructure to service its foreign currency liabilities. Additionally, the agency noticed that on 28 July 2022 Eurotorg had launched a tender offer to existing bondholders to reduce its debt in foreign currencies.
The full Fitch announcement can be found here.