10th Jul 2007 18:19
X5 Retail Group N.V.10 July 2007 X5 RETAIL GROUP - S&P OUTLOOK REVISED TO STABLE Amsterdam, 10 July 2007 - On 9 July Standard & Poor's Rating Services revisedits outlook for X5 Retail Group N.V. (LSE: FIVE), Russia's leading foodretailer in terms of sales, and its subsidiaries to stable from negative. At thesame time, the 'BB-'long-term corporate credit rating was affirmed. Standard & Poor's also assigned its 'BB-' long-term corporate credit and 'ruAA-'Russia national scale ratings to the financing vehicle X5 Finance LLC and itsforthcoming Russian ruble 9 billion ($350 million) senior unsecured bonds. In the report released yesterday Standard & Poor's stated "...the expandinggrowth of Russia's retail market, which is in the early stages of development,means significant growth potential for the group. Strongly positive personalincome trends in X5's target markets, combined with the group's leading marketposition and economies of scale, support the ratings. Added to this is X5'sprudent cost management, which supports strong profitability and cash flowgrowth." The outlook for the rating is stable as there is "...expectation that X5'sfinancial profile will improve from the level reached at year-end 2006." Commenting on the S&P report Vitaliy Podolskiy, Group CFO, said: "We are encouraged by the upgrade of our rating which recognises our post-mergerintegration progress and financial and risk management efforts. We arecontinuing to strengthen our position as a leader in the fast growing groceryretail market in Russia, while effectively implementing strict cost controlmeasures and financial soundness in this highly dynamic environment. " - End - Enquiries to: X5 Retail Group N.V.Gennady FrolovHead of Corporate CommunicationsOffice +7 495 950 5577 ext. 10130Mobile +7 495 998 3335Email [email protected] Note to Editors: X5 Retail Group N.V. is Russia's largest food retailer in terms of sales. As of30 June 2007, the Group had 539 company-managed "Pyaterochka" soft discountstores located in the Moscow (241), St. Petersburg (223) and other Russian areas(75), and 170 company managed "Perekrestok" supermarkets across Central Russiaand Ukraine, including 98 stores in Moscow. As of 30 June 2007, franchisees operated 591 Pyaterochka branded stores acrossRussia and Kazakhstan. Perekrestok had 10 stores operated by franchisees in theMoscow area. Pyaterochka and Perekrestok have merged their operations as of 18 May 2006 tocreate the clear leader in the Russian food retail market. The Group's audited pro-forma net sales for the FY 2006 were US $3,551 million,up +50% vs. 2005. Pyaterochka chain provided US $1,973 million of net sales, thePerekrestok chain contributed US $1,496 million of net sales, and Merkado chaincontributed US $ 82 million. Forward looking statements: This announcement includes statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identifiedby the fact that they do not only relate to historical or current events.Forward-looking statements often use words such as" anticipate", "target", "expect", "estimate", "intend", "expected", "plan", "goal" believe", or otherwords of similar meaning. By their nature, forward-looking statements involve risk and uncertainty becausethey relate to future events and circumstances, a number of which are beyond X5Retail Group N.V.'s control. As a result, actual future results may differmaterially from the plans, goals and expectations set out in theseforward-looking statements. Any forward-looking statements made by or on behalf of X5 Retail Group N.V.speak only as at the date of this announcement. Save as required by anyapplicable laws or regulations, X5 Retail Group N.V. undertakes no obligationpublicly to release the results of any revisions to any forward-lookingstatements in this document that may occur due to any change in its expectationsor to reflect events or circumstances after the date of this document. This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
X5 Retail