Fitch downgraded the ratings of LSR to level B and placed the rating on Rating Watch Negative

Today, Fitch Ratings downgraded the long-term issuer default rating (IDR) in foreign currency and senior unsecured rating of "Group LSR" (Russia) with the level of "B +" to "B" and also placed these ratings under observation on Rating Watch marked "Negative". The Recovery Rating for the senior unsecured debt obligations of the company was affirmed at "RR4". Agency experts have noted that the financial performance of the group may have an adverse effect on the decline in Russian real estate market and building materials, which is believed to analysts, will continue at least throughout this year. Putting ratings on the list Rating Watch "Negative" takes into account the difficult task of obtaining by LSR significant funding from several banks under state control in the next few months. This resources are needed to refinance liabilities maturing and implementation of capital investments. As far as we know Fitch, even though such negotiations are conducted, the decision has been made yet, said the agency.