Fitch upgrades Eurotorg notes

Fitch Ratings said it upgraded Eurotorg LLC 's long-term foreign-currency issuer default rating to B from B-.

The outlook is stable.

Fitch also said it upgraded the senior unsecured rating of the $350 million loan participation notes issued by Bonitron DOC to B with recovery rating of RR4 from B- with recovery rating of RR4.

The upgrades reflect Eurotorg's record of smooth execution of its strategy, improved financial transparency and de-leveraging in 2017, which is projected to continue over 2018 through 2022 thanks to the company's consistently positive free cash flow generation, the agency said.

The ratings also incorporate high foreign-currency risks, which weigh on the company's financial flexibility and balance its conservative capital structure relative to peers, Fitch added.

The ratings are underpinned by Eurotorg's unrivalled market position in the Belarus food retail market and good growth opportunities, the agency said.

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