RAEX Rating (EXPERT RA)
Since 2008, Obuv Rossii is assigned creditworthiness ratings (an agreement with a rating agency, Expert RA CJSC, for assigning ratings.)
The credit rating (creditworthiness rating) is assigned to companies in all economy sectors and shows subjective opinion of the Expert RA rating agency concerning the ability of the company to fulfill its financial obligations in time and in full.
The creditworthiness rating technique is adjusted to specific characteristics of the Russian market and does not take into account the country risk of Russia, i.e. the credit rating is assigned by the agency only according to the national scale. The credit rating includes a forecast of possible changes in the economic environment and assessment of prospects for company development in the midterm.
RAEX rating agency (Expert РА) upgraded creditworthiness rating of the Obuv Rossii Group to ruBВB+. The rating outlook is stable. Previously, the Company had the ruBBB rating with stable outlook.
The key factor underlying the decision of the agency to upgrade the rating is increasing Company’s creditworthiness in large part because of IPO in October 2017, which allowed the Company to attract RUB 5.4 bln after settlements with IPO bookrunners. As a result, the capital doubled as compared to its IFRS level as of 30 June 2017, and the debt load significantly reduced, as a bigger part of the funds were used by the Company to repay current debt burden. This fact had a positive effect on key financial indicators. In addition, internal financial stability of the Company enhanced, and its dependency on short-terms credits decreased.