Eldorado, a leading Russian retailer of household appliances, electronics and household goods, and part of Mikhail Gutseriev’s SAFMAR Group, announces that the Analytical Credit Rating Agency (ACRA) has affirmed Eldorado’s credit rating at BB+, and revised its outlook on the rating to positive.
The Agency improved its outlook from Rating Under Review to Positive a year after Eldorado was awarded its debut ACRA rating, following a review of a number of corporate changes at the Company in 2016-2017. ACRA’s ratings action announcement cites “the expected significant effect of the synergy of the Eldorado and M.Video businesses, in addition to ACRA’s positive expectations regarding the Company’s debt profile.”
As previously, ACRA also cites a number of key factors that affect Eldorado’s rating: appropriate business profile and broad geographical presence, moderate liquidity position, moderate size and profitability with corporate governance that requires strengthening, and high leverage.
Sergei Lee, Eldorado’s Managing Director, said:
“We welcome this confirmation of our ACRA credit rating, and are delighted that the outlook has been revised to Positive. This change is the result of the team’s day-to-day focus on both further improving the Company's financial and operational efficiency and on strengthening the quality of our corporate governance. However, there is still much to do to complete this period of transformation. On behalf of the management of the Company, I would like to reiterate our commitment to further improving business performance and strengthening the brand's position in the Russian market.”