S&P assigns KD B-, ruBBB-

Standard & Poor's said it assigned its B- long-term corporate credit rating and ruBBB- Russia national-scale rating to OJSC KD Group.

The outlook is stable.

The agency said that the ratings on KD are constrained by the company's high exposure to financial risk, stemming from limited liquidity position, weak cash flow generation burdened by considerable working-capital requirements and high financial leverage.

The ratings are constrained further by the company's ambitious expansion plans, the industry's cyclical nature, with heightened sensitivity to economic dynamics and uncertainty associated with Russia's evolving political and business climate and the country's lack of administrative transparency and predictability, S&P noted.

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