Russian retail chain Lenta sees its Fitch Ratings upgraded

St. Petersburg, Russia, 2016-Jul-13 — /EPR Retail News/ — Lenta, (LSE, MOEX: LNTA), one of the largest retail chains in Russia, today announced that the Fitch Ratings has upgraded its Long-term foreign and local currency Issuer Default Ratings (IDRs) from ‘BB-’ to ‘BB’ and its National Long-term rating from ‘AA-(rus)’ to ‘A+(rus)’. The outlook on the ratings is stable.

The upgrade of Lenta ratings to ‘BB’ reflects the Company’s proven execution of its sales growth strategy while maintaining strong profitability.

Fitch’s expectation that Lenta will be able to further strengthen its market position and increase the scale of its business over the medium term, while keeping conservative
credit metrics consistent with higher ratings.

About Lenta
Lenta is the largest hypermarket chain in Russia (in terms of selling space) and the country’s fifth largest retail chain (in terms of 2015 sales). The Company was founded in 1993 in St. Petersburg. Lenta operates 147 hypermarkets in 72 cities across Russia and 42 supermarkets in Moscow and St. Petersburg, with a total of approximately 922,865 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,000 sq.m. The average Lenta supermarket store has selling space of approximately 1,000 sq.m. The Company operates six owned hypermarket distribution centres.

The Company’s price-led hypermarket formats are differentiated in terms of their promotion and pricing strategies as well as their local product assortment. The Company employed approximately 38,414 people as of 31 December 2015.

The Company’s management team combines a mix of local knowledge and international expertise coupled with extensive operational experience in Russia. Lenta’s largest shareholders include TPG Capital and the European Bank for Reconstruction and Development, both of which are committed to maintaining high standards of corporate governance. Lenta is listed on the London Stock Exchange and on the Moscow Exchange and trades under the ticker: ‘LNTA’

A brief video summary on Lenta’s business and its Big Data initiative can be seen here.

For further information please visit www.lentainvestor.com, or contact:
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com

Anastasia Kuznetsova,
Corporate Communications Manager
Тel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com

Citigate 
International Media:
David Westover and Marina Zakharova
Тel: +44 207 282 2886
E-mail: lentateam@citigatedr.co.uk

FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Тel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com

Source: Lenta

X5 Retail Group: Fitch Ratings assigned the Company Long-term foreign and local currency Issuer Default Ratings of ‘BB’

Amsterdam, 2015-2-9 — /EPR Retail News/ — X5 Retail Group N.V. (‘X5’ or the ‘Company’), a leading Russian food retailer (LSE ticker: ‘FIVE’), announced today that Fitch Ratings (‘Fitch’) has assigned the Company Long-term foreign and local currency Issuer Default Ratings of ‘BB’ and a National Long-term Rating of ‘AA-(rus)’. The Outlooks for both ratings are Stable.

As stated in the rating agency’s press-release, ‘the ratings reflect X5’s strong market position and healthy operating performance in 2014, which we expect to continue in the medium term. The ratings are supported by moderate leverage together with adequate financial flexibility thanks to limited FX risks, capex scalability and adequate near-term liquidity profile’. Fitch also noted that ‘X5 is well positioned to retain and improve its market position in the medium term. The Company’s revenues and operating margins will not be negatively affected by consumers’ purchasing power erosion as a potential decrease in supermarket and hypermarket traffic will be offset by more frequent purchases at proximity stores. We also expect accelerated traffic migration to the largest retail chains, including X5, thanks to their better price proposition in comparison with traditional stores and small retailers.’

Note to Editors:

X5 Retail Group N.V. (LSE: FIVE, Fitch – ‘BB’, Moody’s – ‘B2’, S&P – ‘B+’) is a leading Russian food retailer. The Company operates several retail formats: the chain of proximity stores under the Pyaterochka brand, the supermarket chain under the Perekrestok brand, the hypermarket chain under the Karusel brand and Express convenience stores under various brands.

At 31 December 2014, X5 had 5,483 Company-operated stores. It has the leading market position in both Moscow and St. Petersburg and a significant presence in the European part of Russia. Its store base includes 4,789 Pyaterochka proximity stores, 403 Perekrestok supermarkets, 82 Karusel hypermarkets and 209 Express stores. The Company operates 34 DCs and 1,438 Company-owned trucks across the Russian Federation.

For the full year 2013, revenue totaled RUB 534,560 mln, EBITDA reached RUB 38,350 mln, and net income amounted to RUB 10,984 mln. In 9M 2014, revenue totaled RUB 452,285 mln, EBITDA reached RUB 32,365 mln, and net income amounted to RUB 9,869 mln.

X5’s Shareholder structure is as follows: Alfa Group – 47.86%, founders of Pyaterochka – 14.43%, X5 Directors – 0.04%, treasury shares – 0.04%, free float – 37.63%.

Contacts:
Gregory Madick
Executive IR Director
Tel.: +7 (495) 502-9783
e-mail: Gregory.Madick@x5.ru

Anastasiya Kvon
IR Director
Tel.: +7 (495) 792-3511
e-mail: Anastasiya.Kvon@x5.ru