MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has assigned a 'BB-' long-term corporate credit rating to Cyprus-based Delance Ltd, the holding company of Russia's Rolf Group, with a stable outlook.
S&P said it also assigned a 'BB-' long-term debt rating to the proposed senior unsecured bond to be issued by Cyprus-based financing vehicle Colgrade Ltd and guaranteed by Rolf's operating subsidiaries and Delance Ltd.
'The ratings on Rolf's holding company, Delance Ltd are constrained by the group's strong dependency on Mitsubishi Motors Corp through which it generates most of its revenues, its limited geographic and brand diversification and the company's aggressive growth strategy leading to an increasing need for capital,' S&P's credit analyst Anna Stegert said.
The ratings are further restricted by uncertainties associated with Russia's administrative, economic, and social environment, S&P said.
However, these factors are partly mitigated by the company's leading position in the Russian car retail industry, its sound market potential due to rising disposable incomes and the company's moderate financial leverage, the ratings agency added.
S&P added it expects market conditions to remain favorable and that the company would be successful in reducing its dependency on Mitsubishi. TFN.newsdesk@thomson.com rsh/jfr COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.
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