The international rating agency announced that Concern Kalina's ruA- national scale rating was not going to change after the cosmetics manufacturer had sold its 100% shareholding in the German Dr. Scheller Cosmetics AG to Coty.

Standard & Poor's reports the German affiliated company used to be the source of 30% of Kalina's sales but of less than 10% of EBITDA prior to the sale of the shares.

'We don't think the transaction will affect Kalina's liquidity indicators either, since the company is gradually cutting down on the share of short-term debts in the total amount of liabilities it has and is extending their redemption period, which makes up for the loss of credit lines which would be available to Dr. Scheller. We feel the transaction has only a slight impact on the company's business risks profile, as the German business's share in Kalina's overall cash flow was not too big. What is more, the company is now concentrated on producing skin care products and has been reducing its makeup products segment,' the agency reports.

Standard & Poor's expects to watch the development of affairs and keep track of the possible changes in Kalina's financial policies.