S&P cuts LenSpecSMU outlook to stable

Standard & Poor's said it revised its outlook on CJSC SSMO LenSpecSMU to stable from positive.

At the same time, the agency said it affirmed the B long-term and B short-term corporate credit ratings, and the ruA Russia national-scale rating.

The outlook revision reflects the weakened lending conditions in Russia due to the significant turbulence in the local equity and credit markets in recent weeks, with potential knock-on effects for real estate demand and prices, S&P noted.

The consequent increased uncertainty surrounding the company's business prospects and tightened liquidity has diminished the likelihood of an upgrade in the near term, S&P said, noting that the ratings continue to be constrained by the industry's cyclical nature, with heightened sensitivity to economic dynamics; uncertainty associated with Russia's evolving political and business climate; and the country's lack of administrative transparency and predictability.

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