Standard & Poor’s has recently demoted Concern Kalina’s national scale rating from ruА+ to ruВВВ+.

‘The decrease is reflexive of our concerns over the aggressive way in which the company’s liquidity is managed, the rise in debts, the weakening market opportunities, and the interest and currency risks the business is facing at the moment,’ says Standard & Poor’s analyst Anton Geise.

The company’s liquidity troubles have to do with the prevalence of short-term debts in the company’s overall debt structure on the one hand and lack of liquidity reserves on the other. The creditor bank, in its turn, is willing to modify the long-term loan terms, the agency reports.