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Fitch upgrades Eleving Group to ‘B’ with a stable outlook

June 11, 2024

Fitch Ratings has upgraded Eleving Group’s Long-Term Issuer Default Rating (IDR) from ‘B-‘ to ‘B’ with a stable outlook. Also, the Group’s senior secured debt rating was upgraded to ‘B’ with a Recovery Rating ‘RR4’.

As stated in Fitch’s report, the key drivers for the rating update were improvements in the Group’s performance in the last 24 months, including lower leverage, a longer record of business model stability, and access to debt capital markets.

In Fitch’s view, Eleving Group’s progress in corporate governance and initiatives in preparation for a possible IPO, announced in April 2024, are credit-positive because they could further strengthen creditor rights. Eleving Group has already established an international supervisory board and plans to publish a dividend policy within the coming weeks. Fitch believes this builds on previous progress following the bond listing in Frankfurt and Riga.

“Rating upgrade marks an important milestone for the company and is a great evaluation of recent company’s achievement and strategy execution – excellent business results, strengthened company’s corporate governance and successful performance in capital markets. It should signal to our stakeholders that we are on the right path, enhancing our resilience and growth prospects. We are committed to continuing this positive momentum, ensuring that we deliver sustainable value, maintain a healthy business model, and reward the trust of our investors and partners,” comments Modestas Sudnius, the CEO of Eleving Group.

Eleving Group has been partnering with Fitch Ratings since 2019.