S&P boosts Kalina

Standard & Poor's said it raised its long-term Russia national-scale rating on Concern Kalina JSC to A-(ru) from BBB+(ru), reflecting the company's favorable operating performance trend and maintenance of a prudent financial profile.

S&P noted the rating action reflects Kalina's ability to grow its operations and maintain strong market shares in its key segments of Russia's very dynamic and increasingly competitive cosmetics and personal-care products market.

In addition, despite aggressive growth, Kalina has managed to sustain positive operating profitability and preserve moderate exposure to financial risk, the agency said.

Nevertheless, the rating continues to be constrained by intensifying competition with international cosmetics companies in Russia, increasing costs, albeit somewhat offset by changes in product and brand mix and the seasonal volatility of the cosmetics and personal-care products industry, S&P added.

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