Fitch Ratings upgraded PJSC LSR Group's long-term issuer default rating to B+ from B and revised the outlook to stable from positive.
The rating agency upgraded the senior unsecured rating of the Russian real estate developer's outstanding bond issues to B+/RR4 from B/RR4.
Fitch attributed the upgrade to an improvement in the company's working capital volatility and the resulting free cash flow generation, as well as its expectations for a moderate level of funds from operations-adjusted gross leverage of approximately 3.0x on average in the medium term.
