The rating outlook is Stable
St-Petersburg, Russia; 21 March, 2016– Lenta (LSE, MOEX:LNTA), one of the largest retail chains in Russia, today confirms that the National Rating Agency (‘NCA’) has upgraded its credit rating to AA+ from AA on the national scale rating (NSR) for Lenta Limited (‘Lenta’) with stable outlook.
The rating action reflects Lenta’s continuing rapid growth despite the challenging economic backdrop underpinned by a strong balance sheet with an improving debt maturity profile and lower leverage. NCA has also taken into consideration the Company’s leading market position and strong shareholder base, as well as Lenta’s high level of corporate governance and international standards of risk management, logistics and budget planning.
The unpredictable macroeconomic situation, weak consumer spending and increasing competitive environment of the Russian food retail sector were cited as potential risk factors.
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 141 hypermarkets in 70 cities across Russia and 33 supermarkets in Moscow and St. Petersburg, with a total of approximately 884,990 sq.m of selling space. The average Lenta hypermarket store has selling space of approximately 6,100 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 20151.
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:
Lenta
Anna Meleshina,
Public Relations & Government Affairs Director
Tel: +7 812 363 28 53
E-mail: anna.meleshina@lenta.com
Anastasia Kuznetsova,
Corporate Communications Manager
Ňel:+7 (812) 336 39 97
E-mail: a.kuznetsova@lenta.com
Citigate
International Media:
David Westover & Marina Zakharova
Ňel: +44 207 638 9571
E-mail: lentateam@citigatedr.co.uk
FTI Consulting
Russian Media:
Anton Karpov & Victoria Afonina
Ňel:+7 495 795 06 23
E-mail: lenta@FTIconsulting.com
1FTE (full-time equivalent). Average FTE for 2015 was 31,307 employees.
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