On 6 November, the international rating agency S&P Global Ratings affirmed the previous corporate credit rating assigned to SPC Katren JSC.

For the sixth year in a row, the company has been assigned the following ratings:

  •       A long-term issuer credit rating, according to international rating scale, of: BB-
  •       A short-term issuer credit rating, according to international rating scale, of: B
  •       The outlook is stable

The company's reaffirmed BB- rating reflects Katren’s expert ability to fulfil its obligations, which is especially relevant in today’s pharma distribution market in Russia.

The company’s risk profile has been assessed as “weak”, which stems from the highly competitive environment it operates in as well as high country risks. The following factors had a positive impact on Katren’s indicators: continuous improvements to its logistics; high automation levels; a wider product range offered by the company in comparison to that by equivalent Russian businesses, and sales made via the online platform “apteka.ru” aimed at maintaining the growth in sales volumes. The company’s exposure to financial risk has been assessed as “significant[11] ”, while its liquidity as “adequate”. Analysts at S&P have rated Katren’s debt burden as moderate and stable, while noting that the company’s debts may increase due to the buyback of shares from the European Bank for Reconstruction and Development.

Standard & Poor's outlook is stable, reflecting that [12] Katren is expected to continue to show high performance indicators. Katren is the only Russian pharmaceutical distributor that has been assigned credit ratings by an international credit rating agency.

Note

S&P Global Ratings is a financial services company and one of the “Big Three” international credit-rating agencies that focuses on analytical studies of financial markets.