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Expert RA upgraded Obuv Rossii rating
18.12.2017 1215

Expert RA upgraded Obuv Rossii rating

RA expert increased the credit rating of Obuv Rossii group of companies to ruBBB +. The rating outlook is stable. Previously, the company had a ruBBB rating with a stable outlook.

Obuv Rossii Group of Companies is one of the two largest shoe retailers in Russia and the leader in the mid-price segment of the shoe market, which includes 533 stores in more than 140 cities of Russia and two production sites. The rating analysis was carried out according to the consolidated financial statements of Obuv Rossii GC under IFRS.

“The main factor underlying the agency’s decision to increase the rating is an improvement in the company's creditworthiness, largely due to the IPO held in October 2017, which allowed it to attract 5,4 billion rubles. after settlements with the organizers of the IPO. As a result, the capital doubled relative to its level in accordance with IFRS on 30.06.2017 and the debt burden decreased significantly, since the company directed most of the funds received to pay off the current debt burden, which favorably affected the main financial indicators. In addition, the internal financial stability of the company has increased and its dependence on short-term lending has decreased, ”the company’s press release said.

In addition, among the positive factors for the rating, the agency singled out high diversification of sales due to the federal scale of the company’s activity, as well as low dependence on suppliers.

Among the factors that had a restraining effect on the rating are a rather high share of installment sales in the company's business model, which, on the one hand, allows you to maintain and increase sales, on the other hand, puts pressure on working capital; foreign exchange risks due to the fact that 50% of all purchases is provided by foreign suppliers.

The Agency notes the improvement in the quality of corporate risk management in the company as a result of preparing for an IPO: the Board of Directors of the company includes independent directors, an internal audit committee has been created. In addition, the rating is supported by a high reputation of the auditor, information transparency of the company, as well as a high rating of the organization of risk management.

According to the consolidated IFRS reporting on 30.06.2017, Obuv Rossii assets amounted to 14,3 billion rubles, capital - 5,6 billion rubles, revenue for the period from 30.06.2016 to 30.06.2017 - 10 billion rubles, net profit - 1,3 billion rubles.

"Shoes of Russia" Founded in 2003, has a headquarters in Novosibirsk and an office in Moscow. The main business area is the production and sale of footwear and related products. The company operates 533 stores (113 are franchised) under the brands Westfalika (a single-brand shoe store), Pedestrian (a multi-brand shoe supermarket), Rossita (a store for the whole family), Emilia Estra and Lisette (fashion shoe stores), and also develops brands of shoes and clothes for an active lifestyle S-tep, All.go and Snow Guard and owns two shoe factories in the Novosibirsk region.

In accordance with the audited financial results of the group under IFRS, in 2016 revenue amounted to 9,97 billion rubles, net profit - 1,18 billion rubles, EBITDA - 2,54 billion rubles.


Rating agency RAEX (Expert RA) has raised the credit rating of Obuv Rossii group of companies to ruBВB +. The rating outlook is stable. Previously, the company operated ...
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