OREANDA-NEWS. National Rating Agency has lowered its national scale credit rating on CentrObuv Trade House JSC (CentrObuv) to 'BBB+' and placed it on its Watchlist with indefinite implications. The company's first-time 'AA-' credit rating (that fell into the "Enterprises" section of NRA's rating list) was assigned on May 29, 2013. It was upgraded to 'AA' on July 4, 2014 and affirmed at this level on Mar. 10, 2015.

The downgrade by more than one notch reflects the absence of any official response to NRA's information requests by the company's executives and, therefore, CentrObuv's failure to provide requested financial and operating performance information needed for NRA's surveillance purposes, as well as the reports of arbitration disputes involving the company and of a creditor's decision to initiate bankruptcy proceedings in respect of CentrObuv.

That said, NRA notes that CentrObuv has demonstrated a strong financial performance (according to its audited IFRS financials) in the review period, namely, a positive revenue growth, good business efficiency, moderate debt with a comfortable maturity profile and a consistently strong liquidity position. Its borrowing portfolio is diversified by creditor, and there are credit lines opened by leading Russian and foreign banks, most of them unsecured.