Fitch rates PIK Group BB-

Fitch Ratings said it assigned PJSC PIK Group and PIK-Corp. long-term issuer default ratings of BB- with a stable outlook.

The agency said the ratings reflect the group's leading market position in Russia, successful deleveraging resulting in Fitch-defined funds from operations gross leverage decreasing to 1.6x as of end-2018 from 7.9x as of end-2016, sustainably positive free cash flow and a favorable mortgage market environment that supports demand for the group's affordable residential units.

The rating is constrained by the group's concentrated portfolio and lack of geographical diversification, Fitch noted.

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