S&P Global Ratings downgraded Magnit's credit rating to 'CCC-' level after similar action on sovereign
March 09, 2022 at 09:01 am EST
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MAGNIT PJSC (MGNT)
S&P Global Ratings downgraded Magnit's credit rating to 'CCC-' level after similar action on sovereign
09-March-2022 / 17:00 MSK
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S&P Global Ratings downGRaDED MAGNIT'S CREDIT RATING TO "CCC-" LEVEL after similar action on sovereign
Krasnodar, Russia (March 9, 2022): Magnit PJSC (MOEX and LSE: MGNT; the Company), one of Russia's leading retailers, announces the downgrade of its rating to "CCC-" level by S&P Global Ratings after similar action on sovereign.
On March 7, 2022 S&P Global Ratings downgraded the long-term credit rating of PJSC Magnit from "BB+", Stable outlook to "CCC-", Negative outlook, the same level as the foreign currency rating and the transfer and convertibility assessment on Russia, to reflect the heightened sovereign risk for all Russian corporate issuers.
The downgrade reflects the view of S&P of the uncertainties for virtually all rated Russian corporates and utilities companies, whether they are government-related entities or privately owned companies, around their technical ability to make timely debt payments (interest and/or principal) to all creditors due to measures imposed by the Russian government, irrespective of their financial capacity to pay.
For further information, please contact:
Dina Chistyak
Director for Investor Relations dina_chistyak@magnit.ru
Office: +7 (861) 210 9810 x 15101
Media InquiriesTwitter
press@magnit.ru@MagnitIR
Note to editors
"Magnit" is one of Russia's leading retailers. Founded in 1994, the company is headquartered in the southern Russian city of Krasnodar. As of December 31, 2021, Magnit operated 45 distribution centers and 26,077 stores in 3,898 cities and towns throughout 7 federal regions of the Russian Federation.
In accordance with the audited IFRS 16 results for FY 2021, Magnit had revenues of RUB 1,856.1 billion and an EBITDA of RUB 214.2 billion. Magnit's local shares are traded on the Moscow Exchange (MOEX: MGNT) and its GDRs on the London Stock Exchange (LSE: MGNT).
Forward-looking statements
This document contains or may contain forward-looking statements that may or may not prove accurate. For example, statements regarding expected sales growth rate and/or store openings are forward-looking statements. Forward-looking statements involve known and unknown risks, uncertainties and other important factors that could cause actual results to differ materially from what is expressed or implied by the statements. Any forward-looking statement is based on information available to Magnit as of the date of the statement. All written or oral forward-looking statements attributable to Magnit are qualified by this caution. Magnit does not undertake any obligation to update or revise any forward-looking statement to reflect any change in circumstances.
ISIN:
US55953Q2021
Category Code:
MSCU
TIDM:
MGNT
LEI Code:
2534009KKPTVL99W2Y12
OAM Categories:
3.1. Additional regulated information required to be disclosed under the laws of a Member State
PJSC Magnit is one of the Russian leaders of retailing. Net sales break down by activity as follows:
- retail distribution (97.4%);
- wholesale distribution (2.6%).
As of the end of 2021, the group had a network of 26,077 outlets, under the Magnit name, located in Russia and broken down primarily between convenience stores (16,190), cosmetics stores (6,966) and hypermarkets (470).
All sales are in Russia.
MAGNIT 
