S&P changes Pioneer Group view

S&P said it revised its outlook on Pioneer Group CJSC to positive from stable and affirmed the B- long-term issuer credit rating on the company.

The agency said the positive outlook on Pioneer reflects a view of a one-in-three likelihood that it could upgrade the company if its increases in scale and profitability are stronger than currently expected, despite challenges presented by oversupply in the Moscow housing market.

“Our opinion incorporates Pioneer's plans to launch a number of new projects in its core markets of Moscow and St. Petersburg, which might lead to a change in the company's operating fundamentals,” S&P said in a news release.

The outlook also factors in an expectation that Pioneer will likely maintain a ratio of EBITDA to interest in the 3.0x-4.0x range, supported by better credit market conditions in Russia and the company's progress in reducing its cost of funding, the agency added.

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