Fitch upgrades Lenta

Fitch Ratings said it upgraded Lenta LLC's long-term foreign- and local-currency issuer default ratings to BB+ from BB.

“The upgrade reflects our expectations that Lenta will maintain its conservative leverage metrics achieved in 2020, despite the company's plans of material expansion in supermarkets and proximity- store formats aimed at doubling its revenue by 2025. The upgrade also reflects, critically, Fitch's assumption that the company will continue to adhere to its capital-allocation policy, targeting a maximum net debt to EBITDA of 1.5x, by adjusting potential shareholder distributions accordingly in a period of heightened capex and/or in case of any material M&A,” Fitch said in a press release.

The outlook is stable.

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