22.12.2015, 22:13
Lenta LLC's Credit Rating Affirmed
OREANDA-NEWS. National Rating Agency has affirmed its 'AA' credit rating on Lenta LLC with a positive outlook. The company's first-time credit rating of 'AA-' from NRA was assigned on Sep. 14, 2012 and affirmed on Sep. 11, 2013. On Oct. 6, 2014, the rating was raised to 'AA' with a stable outlook.
Lenta's operational and financial performance keeps improving on the back of its moderate debt level and considerably strengthened capital adequacy during the past year. The rating recognizes the company's leading market position, transparent business structure and strong shareholder base. Thanks to its shareholders, Lenta adheres to sound corporate governance standards and manages its risks, logistics operations and budgeting process based on international best practice.
The positive rating outlook reflects NRA's expectation that after 2015, the company will maintain its high growth rate, strong credit standing and healthy financial profile. NRA plans to consider a positive rating action on Lenta in 1Q 2016 after the company discloses its consolidated financials and key operational performance metrics for 2015.
NRA notes risks, such as the company's continued dependence on the macroeconomic situation and consumers' purchasing power, and the challenging competitive environment of the food retail industry.
However, Lenta's high equity immobilization ratio stemming from sizable capital expenses is partially offset by the company's favourable capital-to-fixed-assets ratio and comfortable (long-term) debt maturity profile.
Lenta's operational and financial performance keeps improving on the back of its moderate debt level and considerably strengthened capital adequacy during the past year. The rating recognizes the company's leading market position, transparent business structure and strong shareholder base. Thanks to its shareholders, Lenta adheres to sound corporate governance standards and manages its risks, logistics operations and budgeting process based on international best practice.
The positive rating outlook reflects NRA's expectation that after 2015, the company will maintain its high growth rate, strong credit standing and healthy financial profile. NRA plans to consider a positive rating action on Lenta in 1Q 2016 after the company discloses its consolidated financials and key operational performance metrics for 2015.
NRA notes risks, such as the company's continued dependence on the macroeconomic situation and consumers' purchasing power, and the challenging competitive environment of the food retail industry.
However, Lenta's high equity immobilization ratio stemming from sizable capital expenses is partially offset by the company's favourable capital-to-fixed-assets ratio and comfortable (long-term) debt maturity profile.
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