Standard & Poor's: X5 Retail Group’s rating halted by aggressive growth

9 December 2010 (18:01)

UrBC, Moscow, December 8, 2010. The international rating agency placed X5 Retail Group N.V. BB- long-term credit rating on CreditWatch, with Negative rating outlook; this means the ratings could be demoted or affirmed.
At the same time, Standard & Poor's placed OAO Kopeika Trade House’s B- long-term credit rating and ruBBB national scale rating on CreditWatch with Positive rating outlook, which means the ratings could be promoted or affirmed.
‘Both companies’ ratings were placed on CreditWatch after X5 Retail Group reported it had bought a 100% shareholding in Kopeika,’ the agency’s credit analyst Standard & Poor's Anton Geyze reports.
X5 Retail Group’s rating is halted by the company’s aggressive growth strategy and its financial policy as well as insufficient liquidity and being prone to risks occasioned by the developing market economy and the exchange rate’s volatility, the analyst says.

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