S&P Affirms Etalon Key Operating Subsidiary at B+
ETALON GROUP PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that Standard & Poor’s has affirmed the long term global scale credit rating of Etalon Group subsidiary Etalon LenSpetsSMU at B+ with a stable outlook.
Commenting on the credit rating, Etalon Group CFO Kirill Bagachenko said:
“Etalon LenSpetsSMU is the key operating company of Etalon Group, with a reliable public credit history and one of the lowest borrowing rates among Russian development companies. The fact that Standard & Poor’s has once again affirmed Etalon LenSpetsSMU’s credit rating at B+ is a testament to our solid financial position, our prudent approach to managing our credit portfolio and efficient financial planning.
“This credit rating, which is the highest among public real estate development companies in Russia, is important for the Company. Over the past year, we have substantially reduced financing costs, while making consistent improvements to our capital structure and enhancing our credit management capabilities. Thanks to growing demand for Etalon Group property, we are able to maintain low leverage levels, despite the acquisition of four high-end projects in St Petersburg and Moscow, as well as a high dividend payout range of 40% to 70% of consolidated IFRS net profit, in line with Etalon Group’s dividend policy.”