Fitch rates Otechestvennye B-

Fitch Ratings said it assigned OAO Otechestvennye Lekarstva a long-term issuer default rating of B- and a national long-term rating of BB-.

The outlook is negative.

Fitch said ratings reflect the issuer's position as a small-sized pharmaceutical company in the Russian pharmaceutical industry, which shows strong underlying fundamentals.

Ratings are supported by the group's diversified product portfolio, with no significant expiry of substance patents before 2011, the agency noted.

Negative factors include the company's over-reliance on the Russian health care system, small research and development budget, as well as the group's relatively low profitability, Fitch said.

The issuer has a total debt-to-EBITDA ratio of 5.3 times for fiscal 2007.

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