S&P upgrades Kopeyka

Standard & Poor's said it upgraded OJSC Trade House Kopeyka's long-term corporate credit rating to CCC- from CC, upgraded its Russia national scale rating to ruCCC- from ruCC and placed the ratings on CreditWatch with developing implications.

The upgrade and CreditWatch placement follow the company's announcement that it is pursuing alternatives for refinancing bonds maturing in June, bonds that become putable in August 2008 and other loans maturing within the next three months. This could involve support from Nikolai Tsvetkov - a Russian investor the company has identified as its major shareholder - or a real estate securitization involving Kopeyka's real estate portfolio, which the management values at $430 million.

The agency expects Kopeyka to need new external funding in the months ahead, and S&P said the upgrade reflects an increased likelihood that the shareholder will provide it if other options fail or cannot be arranged in time.

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