...Fitch Ratings affirmed PJSC BELUGA GROUP's (Beluga) Foreign-Currency and Local-Currency Long-Term Issuer Default Ratings (IDRs) at 'B+' in February 2018. The Outlook on the IDRs is Stable. Fitch has also downgraded the rating of Beluga's senior unsecured rouble bonds to 'B' with a Recovery Rating of 'RR5' from `B+'/'RR4'. The ratings and Stable Outlook reflect our expectation of improving consumer sentiment in Russia and a stable regulatory environment over the next four years, which would allow Beluga to maintain acceptable leverage and operating margins. The ratings remain underpinned by Beluga's leading position in the Russian alcoholic beverages market, which is supported by a portfolio of national and regional brands as well as a more developed distribution platform and larger scale of operations than most competitors. The ratings also factor in an adequate liquidity position, good access to external financing and capex scalability, which balance Beluga's weak free cash-flow profile....
