O`KEY Group S.A. (LSE, AIX, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, announces that Expert RA (the ‘Agency’) has affirmed a credit rating of ‘ruA-’ for O`KEY LLC, the main operating subsidiary of O`KEY Group S.A. The outlook of the rating remains Stable.
The rating reflects the Group's strong and sustainable operational and financial position in the market, low exposure to market risks due to the low (about 5%) volume of purchases denominated in foreign currency, as well as the absence of debt in foreign currency. The Agency notes, among other things, the high standards of corporate governance and information transparency of the Group.
The Group's revenue growth by 8% to 202 billion rubles and the Group's EBITDA under IFRS 16 increase by 9.8% to 17 billion rubles in 2022 supported the assessment of Group’s profitability. Among the positive evaluation factors, the Agency also noted a 53% increase in the revenue of DA! discounters and a doubling of their EBITDA under IFRS 16 in 2022.
The Agency highly appreciated the quality indicators of the Company's liquidity, which is due, according to Expert RA, to the Group's low debt burden and diversified financing structure. These indicators also had a positive impact on the rating.
The corporate risk block is evaluated positively by the Agency due