O`KEY Group S.A. (LSE, AIX, MOEX: OKEY, the “Group” or the “Company”), one of Russia’s leading food retailers, announces that NCR rating agency (the ‘Agency’) has assigned a credit rating of ‘A.ru’ for O`KEY LLC, the main operating subsidiary of O`KEY Group S.A. The outlook of the rating remains Stable.
The Agency highly appreciated the business profile of O’KEY Group due to its significant geographical distribution (the Company is present in 23 cities in 6 federal districts of the Russian Federation), a diversified supplier base (the share of each does not exceed 5% in the total volume of purchases) and the lack of concentration of risk on any large asset.
The Agency also noted the Group's strategy of the development of the discounter format as a response to current trends in consumer demand in Russia. Over the past five years, the share of discounters in the Group's revenue has grown from 6% to 26%. NCR expects that in 2023 discounters will remain a key driver of the Group's growth.
The Company's financial profile is supported by strong indicators of debt servicing and liquidity. Thus, in the years of 2021 and 2022, the total amount of cash and operating profit (OIBDA) of the Group was twice the total amount of short-term debt and net interest expenses. The share of short-term debt in the last three years has been in the range of 13-23% of the Group’s total debt.
The Agency also positively assessed the high level of development of the Company's corporate governance and noted low shareholder risks.