Moody's downgrades X5 Retail Group rating

9 March 2011 (09:21)

The international rating agency demoted X5 Retail Group’s corporate rating and its default probability rating, RIA Novosti reports.

Moody's downgraded X5 from B1 down to B2 after the company had bought up Kopeika, one of the country-wide discounter food chains. The agency’s experts explain that the rating had to go down because of the expected deterioration of the company’s financial performance immediately following the transaction. The rating outlook for both ratings is Stable.

X5 Retail Group completed the deal at 51.5bn RUR in December 2010. Kopeika’s stores will undergo a re-branding campaign and will come to look and operate as Pyaterochka within two years’ time.

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