05.12 2017

For the fifth time, Standard & Poor’s has confirmed JSC Katren’s corporate rating as BB-/B, with a ‘Stable’ forecast.

On 29 November the international rating agency Standard & Poor's confirmed the corporate rating it had earlier given to JSC Katren.

For the fifth year in a row the company has been rated as follows:

  • Long-term credit rating: BB- on the international scale
  • Short-term credit rating: B on the international scale
  • Ratings forecast: Stable

This confirmation of the ВВ- rating reflects Katren’s good record in carrying out its commitments, which is especially important given the recent state of the Russian pharmaceutical distribution market.

The company’s business risks are classified as ‘weak’, due to the high country risks and the high risks inherent in the volatile pharmaceutical distribution sector. Katren’s business model has a positive effect on the company’s rating: it has one of the lowest “operational costs/ sales” ratings of all Russian companies in the sector. The company’s financial risks are rated as “average” and its liquidity as “adequate”. S&P’s analysts noted that the profitability indicator was higher and the capital turnover indicator better than they had expected.

Standard & Poor's classifies Katren’s forecast as “stable”, which means that the company is expected to maintain its main ratings for the next two years. Katren is the only Russian pharmaceutical distributor to have received a credit rating from an international ratings agency.

Note
Standard & Poor’s is a credit ratings service and one of the “Big Three” international ratings agencies; it focuses mainly on the analysis of financial markets.