S&P: Borets view stable

Standard & Poor's said it revised to stable from negative the outlook on Borets International Ltd. and affirmed its BB- long-term corporate credit rating and ruAA- Russia national scale rating.

The outlook revision reflects the view that Borets should be able to improve its operational performance and cash generation in 2011 and that the ongoing litigation regarding backdated tax is unlikely to result in material cash outlays for Borets, according to the agency.

The BB- rating reflects the revised assessment of Borets' financial risk profile as significant while its business risk profile is still weak, the agency noted.

S&P said it may consider lowering the rating if Borets increased its leverage above an adjusted debt to EBITDA of 2.0x.

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