OREANDA-NEWS. Fitch Ratings has upgraded Lenta LLC's Long-Term Foreign and Local Currency Issuer Default Ratings (IDRs) to 'BB' from 'BB-' and its National Long-term rating to 'AA-(rus)' from 'A+(rus)'. The Outlooks are Stable. A full list of rating actions is below.

The upgrade reflects Lenta's proven execution of its sales growth strategy while maintaining strong profitability so far. We also expect Lenta will be able to further strengthen its market position and enlarge business scale over the medium term, while keeping conservative credit metrics consistent with the assigned ratings. This is based on our assumption that the company will maintain strict financial discipline, rigorous control over costs and deliver positive like-for-like (LfL) sales growth, as it continues to execute its expansion plans. The ratings also take into account Lenta's ability to raise equity to fund store roll-outs and manage its leverage as proven in 2015.