22.11 2016

Standard&Poor's Agency Has Confirmed Katren JSC's International Corporate Credit Rating at BB-/B Level (Stable Forecast) for the Fourth Time

On November 15, Standard&Poor's Agency confirmed Katren JSC's previously assigned international corporate credit rating.

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

National credit rating: АА-

Long-term international credit rating: BB-

Short-term international credit rating: B

Rating forecast: Stable

The confirmation of these ratings reflects Katren JSC's position in the market and its prospects for business growth. Its business risk profile was estimated as "weak", and determined by low profitability and high competition in the pharmaceutical distribution sector in Russia.

Katren JSC's business model characterized by low costs has a positive impact on its indicators. However, the decrease in demand for pharmaceutical products in Russia, caused by the fall of real incomes of the population, is having a negative influence on the company's performance.

Katren JSC's financial risk profile is estimated as "average". This assessment was amended primarily due to the company's financial policy upgrade aimed at maintaining its existing "Adjusted Debt/EBITDA" rate. Liquidity is estimated as "adequate". S&P analysts focused in particular on the activities of Katren JSC's management, which has increased the efficiency of the company's operations and neutralized negative market trends. Katren JSC remains one of the most effective players in the Russian market demonstrating stable low operating costs.

The Standard & Poor's Agency's rating forecast was estimated as "stable". This means it is assumed that Katren JSC will retain its key indicators within the next two years. We'd like to remind you that Katren JSC is the only Russian pharmaceutical distribution company that has received a credit rating from an international credit rating agency.

Katren JSC
Katren JSC is the largest pharmaceutical distributor in Russia and is part of the OJSC Katren Group. The total area of its warehouse complexes comprises 121,500 square metres. In 2015 JSC Katren’s trade turnover totalled 203 billion roubles, and it held 18.4% of the market share of the direct supply of pharmaceuticals. JSC Katren works with 701 suppliers and has 23 branches throughout Russia. Katren supplies to 44,235 end-delivery points.