...The rating reflects a strengthening in PJSC Beluga Group's operating profile over the past five years. This is manifested in growing product diversification, profitability improvement, a doubling of scale and stronger leadership in its market position. The upgrade is also supported by significant deleveraging achieved in 2020. The Positive Outlook reflects Beluga Group's shift to a more conservative financial policy leading to potential further de-leveraging, as well as our expectation that the business profile will continue strengthening over 2021-2024. This continues to offset a funding structure that relies mostly on uncommitted bank facilities and operations in Russia, which leads to a low operating environment score of `bb-' for Beluga Group. Proceeds from a recent share placement and our expectation of consistently positive free cash flow (FCF) in 2021-2024 should allow Beluga Group to maintain a conservative capital structure, which, subject to a further strengthening of its operating...
