Fitch lowers O'Key view to negative

Fitch Ratings said it changed the outlook on O'Key Group SA's foreign-currency and local-currency long-term issuer default ratings to negative from stable and affirmed the issuer default ratings at B+.

Fitch also simultaneously withdrew all of O'Key's ratings for commercial purposes.

The outlook change reflects downwardly revised assumptions around the near-term operating performance of O'Key in an increasingly competitive Russian food-retail environment, the agency said.

This lead to execution risks in improving the performance of its hypermarket and discounter formats, Fitch said.

As a result, the agency said it continues to view O'Key's current financial risk as elevated for the rating, despite cash proceeds from the sale of the company's undersized supermarket operations in 2018.

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