S&P: Rosinter view negative

Standard & Poor's said it revised to negative from stable its outlook on Rosinter Restaurants Holding OJSC and affirmed the long-term corporate credit ratings at B-.

The outlook revision reflects Rosinter's worsening liquidity and credit ratios, following a weak operating performance in 2011, S&P said.

As a result of declining operating profits, Rosinter breached the maximum leverage allowed under the covenants on its RUB 700 million loan from Sberbank and RUB 250 million loan from ZAO UniCredit Bank (BBB/stable/A-3), according to the loan agreement documentation. These loans comprise two-thirds of Rosinter's debt portfolio and have now been classified as short-term in the company's financial statements following the covenant breach.

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