S&P Affirms Etalon Key Operating Subsidiary at B+

26 June 2018

Etalon Group PLC (“Etalon Group” or the “Company”), one of Russia’s largest and longest-established development and construction companies, announces that Standard & Poor’s has affirmed the long term global scale credit rating of Etalon Group subsidiary Etalon LenSpetsSMU at B+ with a stable outlook. 

Commenting on the credit rating, Etalon Group CFO Kirill Bagachenko said:

“Etalon LenSpetsSMU is the key operating company of Etalon Group, with a reliable public credit history and one of the lowest borrowing rates among Russian development companies. The fact that Standard & Poor’s has once again affirmed Etalon LenSpetsSMU’s credit rating at B+ is a testament to our solid financial position, our prudent approach to managing our credit portfolio and efficient financial planning.

“This credit rating, which is the highest among public real estate development companies in Russia, is important for the Company. Over the past year, we have substantially reduced financing costs, while making consistent improvements to our capital structure and enhancing our credit management capabilities. Thanks to growing demand for Etalon Group property, we are able to maintain low leverage levels, despite the acquisition of four high-end projects in St Petersburg and Moscow, as well as a high dividend payout range of 40% to 70% of consolidated IFRS net profit, in line with Etalon Group’s dividend policy.”

This and other recent announcements are available on the Etalon Group website: www.etalongroup.com/investors/news/

Etalon Group IR Team

T: +44 20 8123 1328
E: info@etalongroup.com


Sam VanDerlip
T: +44 7554 993 032
T: +7 499 918 3134
E: vanderlip@em-comms.com

About Etalon Group

Founded in 1987 by Viacheslav Zarenkov, Etalon Group has become one of Russia's largest development and construction corporations. The Company focuses on middle class residential real estate in the Moscow and St Petersburg metropolitan areas, where it operates through Etalon Invest and Etalon LenSpetsSMU subsidiaries. With a 30-year history, Etalon Group has one of the longest and most successful track records in the Russian real estate industry - since its inception, Etalon Group has commissioned 5.8 million sqm.

Etalon Group's strong reputation among consumers supports its pre-sales business model, which helps the Company to minimise external financing needs for on-going projects while maintaining a secure liquidity position: net debt as of 31 December 2017 was RUB 9.7 billion.

The Company is vertically integrated, which helps it to control costs, quality and timing, as well as to demonstrate best-in-class profitability. Etalon Group employs 5 thousand people, and its nationwide sales and marketing network covers 52 Russian cities.

As of 31 December 2017, Etalon Group's assets comprised 38 projects, with a total of 2.82 million sqm of unsold net sellable area, and a construction and maintenance division. Knight Frank valued the Company’s assets at RUB 135,197 million.

For the year ended 31 December 2017, Etalon Group's new contract sales totalled 512 ths sqm, or RUB 50,240 million. Deliveries in 2017 amounted to 423 ths sqm.

The Company recorded revenue of RUB 70.6 billion and EBITDA of RUB 13.2 billion for the year ended 31 December 2017.

Etalon Group’s GDRs have been traded on the Main Market of the London Stock Exchange since 20 April 2011.