S&P lifts X5 Retail view to positive

Standard & Poor’s said it revised the outlooks on X5 Retail Group NV and its subsidiary, OOO X5 Finance, to positive from stable.

The B+ long-term corporate credit ratings on both companies also were affirmed.

The agency also said it affirmed the B+ rating on X5 Finance’s senior unsecured ruble bond. The recovery rating remains at 3, reflecting 50% to 70% expected default recovery.

The ratings reflect the group’s improved operating performance and credit metrics over the past few quarters following a management shake-up in 2013, S&P said.

The group should be able to sustain similar or stronger operating performance and credit measures over the next few quarters despite ongoing difficult economic conditions in Russia, the agency said.

X5’s operating performance started to improve at the end of 2013 after two years of declining growth in sales and customer traffic, S&P said.

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