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Credit Rating Given to Setl Group by S&P Global Ratings Remains at B+ level, with “Stable” Outlook

2019 june 27

The S&P Global Ratings agency has left unchanged the credit rating of the Setl Group holding company at the B+ level. The rating change outlook is "Stable". Currently, the B+ international rating remains S&P Global Ratings’ highest public rating in Russia for development companies.

“The S&P’s rating of Setl Group is at the B+ level and has not changed since 2017. This indicates a stable and sustainable development of the company,” Yan Izak, CEO of Setl Group, comments. "Recently, the ACRA agency has assigned us the A- rating, the highest for Russia’s development industry from this agency. The current credit ratings of Setl Group are accounted for by to the significant diversification of the project portfolio, high liquidity and profitability of the business and the reduction of the debt burden: since the beginning of 2019, the holding company's debt burden decreased by 35%, from 13.9 to 9 billion rubles. The ratings show that our company is completely ready for a gradual transition to working with escrow accounts.”

By the end of 2018, Setl Group showed an increase in a number of important indicators of the consolidated statements under IFRS, including the following

·         the consolidated revenue of the holding company’s amounted to 92.2 billion rubles as compared to 91.1 billion rubles in 2017;

·         the adjusted EBITDA for 2018 amounted to 15.5 billion rubles and increased by 16.7%;      

·         Setl Group's own capital increased 1.5 times for 2018 and amounted to 8.9 billion rubles;      

·         gross margin calculated as the ratio of gross profit to revenue amounted to 22.5% in 2018 versus 19.6% in 2017. 

For several years on end Setl Group has been included in the TOP 3 developers of Russia in terms of the volume of housing under construction. All in all, from the moment of its foundation, the company completed the construction of and commissioned more than 5.6 million square meters of the total area of residential houses.

For the first time the S&P Global Ratings public credit rating was assigned to Setl Group at the B+ level with the stable outlook according to the international scale on June 8, 2017.

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Companies of Setl Group holding