S&P lifts Leader Invest view to positive

S&P said it revised the outlook on Leader Invest JSC to positive from stable and affirmed the B ratings on the company.

Etalon Group has purchased a 51% equity stake in Leader-Invest from Sistema AFK, S&P explained.

The outlook revision reflects a view that acquisition, which was finalized in February 2019, will boost Leader's operating and financial performance and market position, the agency said.

S&P said it believes Etalon's strong construction and development expertise will enhance Leader's capacity to deliver its projects in a timely manner, supporting EBITDA and revenue growth.

The positive outlook reflects an expectation of benefits coming from its integration within Etalon, the agency said.

Etalon's industry expertise and risk management practices will strengthen Leader's project execution, supporting its margins, S&P said.

This should offset the expected increase in project finance debt for Leader triggered by changing regulation for homebuilders and developers in Russia, the agency added.

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