Fitch lifts Synergy

Fitch Ratings said it has upgraded OAO Synergy's long-term foreign and local currency issuer default ratings to B+ from B.

The outlook is stable.

The upgrade reflects Fitch's expectation of a stabilizing Russian duty-paid vodka market, with better visibility of Synergy's future revenues and profits thanks to the cancellation of previously planned excise duties increases in 2015-2016, the agency noted.

The ratings are also supported by Synergy's leading market position, improving product diversification and adequate pricing power demonstrated in 2013-2014, despite sharp excise duty increases, Fitch said.

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