30 January 2020

S&P upgrades outlook on X5 BB rating to positve

Amsterdam, 30January 2020 – X5 Retail Group (“X5” or the “Company”), a leading Russian food retailer (LSE and MOEX ticker: “FIVE”), announces that S&P Global Ratings (“S&P”) has changed the outlook on the Company’s BB rating to “Positive” from “Stable”.

The credit rating agency stated that the main factors supporting the positive outlook on X5’s BB rating are Company’s leadership in the Russian food retail market, its advanced
e-commerce infrastructure, and sound profitability that will allow the company to strengthen its cash flow generation in 2020-2021.​

X5 Chief Financial Officer Svetlana Demyashkevich said:

“I am pleased that S&P have acknowledged the continued positive development of X5’s creditworthiness by upgrading the outlook on our corporate rating to ‘Positive’. Over the course of the last year we have succeeded at further strengthening our business model and developing X5’s innovation capabilities, while also maintaining leverage ratios and borrowing costs at comfortable levels.”​