S&P rates Wimm-Bill-Dann bond ruA+

Standard & Poor's said it assigned its ruA+ Russia national scale rating to Wimm-Bill-Dann Foods OJSC's (B+/negative) proposed Russian ruble 3 billion senior unsecured bond issue.

Proceeds will be used to refinance nearing debt maturities and partly finance planned capital expenditures.

The ratings are constrained by the challenging operating environment in the Russian market, together with the company's relatively modest debt protection measures and its fairly ambitious growth strategy, the agency said.

These factors are partially mitigated by Wimm-Bill-Dann's market leadership in dairy products and considerable, albeit declining, position in the juice segment; its strong, well-diversified and improving brand portfolio marked by a high level of consumer awareness and the competitive advantage of having countrywide production and distribution coverage.

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