Fitch revises O’key outlook to stable

Fitch Ratings said it revised Russia-based food retailer O'key Group SA's outlook to stable from positive.

At the same time, the agency affirmed the foreign and local currency long-term issuer default ratings at B+, O’key LLC’s senior unsecured debt at B+/A(rus) with a recovery rating of RR4 and the national long-term rating at A(rus).

Fitch said the outlook revision reflects weaker-than-expected credit metrics for the next three years as O'key's stable operating performance is offset by a weak consumer and competitive environment in the Russian retail sector.

It also reflects execution risks around the imminent launch of O'key's new convenience store format, accelerated store openings in 2015 and a change in management during 2014, the agency said.

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