S&P rates Pioneer notes B-

Standard & Poor's said it affirmed the B- long-term corporate credit rating on CJSC Pioneer Group, along with its ruBBB- Russia national scale rating.

The agency also said it assigned a rating of B- and a recovery rating of 4 to the company's senior unsecured notes. The recovery rating indicates 30% to 50% expected default recovery.

The outlook is stable.

The ratings reflect the company's highly leveraged financial risk profile, S&P said. This is because the company's large RUB 3.6 billion acquisition of Botanichesky's land was fully funded with debt, the agency said.

The company's cash flow generation is highly volatile as shown by changes in free operating cash flow of more than 50% over the past five years and negative EBITDA in 2010, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.