The Bondholders Association (ABO) is asking the ACRA rating agency to revise the assessment of the M.video retailer, according to a letter from the association’s chairman Alexei Afonin addressed to the agency’s general director Vladimir Gusakov, which Vedomosti has read. After the start of the special operation, M.video was forced to quickly reorganize the processes of procurement and delivery of goods, as well as additionally finance the working capital necessary for the purchase of goods abroad, ACRA wrote in March 2023. The company’s revenue in 2022 decreased by 15.5 % year-on-year to RUB 402.5 billion, while net loss increased 2.5 times to RUB 10.3 billion.
In March, ACRA downgraded M.video’s rating to A from A+ (the outlook remained stable) due to an increase in the debt burden. Category A ratings characterize the borrower’s reliability as moderately high. The agency believed that the company’s leverage would improve, noting the strong market position and the high assessment of M.video’s business profile.
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