Sinergiya : Synergy’s international rating upgraded to B+

OJSC "Synergy" (MOEX: SYNG), a leading producer of spirits in Russia, reports that Fitch agency has upgraded Synergy's Long-term foreign and local currency Issuer Default Ratings (IDRs) to 'B+' from 'B'. The Outlook is Stable. 

In the official statement of the Fitch agency is noted: "Synergy enjoys a leading market position in Russia, which is supported by a portfolio of strong brands, a more developed distribution platform and larger scale of operations compared with most competitors. 

We expect Synergy to be able to protect its sales volumes in 2015-2016. The ratings also factor in Synergy's financial flexibility resulting from a strong liquidity cushion and limited exposure to FX risks, which largely protects the company from potential negative implications of the current economic situation in Russia. The ratings are also supported by Synergy's leading market position, improving product diversification and adequate pricing power demonstrated in 2013-2014, despite sharp excise duty increases". 

Also the Fitch agency stated, that "The upgrade reflects Fitch's expectation of a stabilizing Russian duty-paid vodka market, with better visibility of Synergy's future revenues and profits thanks to the cancellation of previously planned excise duties increases in 2015-2016".

For additional information please contact:

Prokhor Malyutin, Director of Public Relations	OJSC "Synergy"	Tel. [phone] Fax [phone] e-mail: [e-mail]
Sergei Kuptsov Director of the Corporate Finance Department	OJSC "Synergy"	Tel. [phone] Fax [phone] e-mail: [e-mail]

Briefing note for editors:

About Synergy, Co

OJSC "Synergy" is the leading diversified spirits group in Russia with a 15% share of the legal vodka market in Russia. The Company`s strategic focus lays on production and distribution of alcoholic beverages. Synergy is #1 Russian independent importer of spirits. Synergy possesses its own distributional platform, ensuring the largest possible market coverage, and diversified portfolio of federal brands, addressing market demands across the full spectrum of price points, from the low-middle to the super-premium price segments.  

The Company`s federal brand portfolio includes super-premium vodka Beluga, premium vodka Veda, sub-premuim vodkas Myagkov and Russky Lyod, middle vodka Belenkaya, low-middle vodka Gosudarev Zakaz and brandy Zolotoy Reserv. The Company operates seven spirits production plants and one of the largest distributional platform in Russia. Synergy is the exclusive distributor of one of the global premium spirits producer William Grant & Sons, representing in Russia such brands as Scottish whisky Glenfiddich, Grant's, Clan McGregor, The Balvenie, gin Hendrick's and Irish whisky Tullamore Dew. In addition to this, the Company distributes also the products of  French house of Camus cognac. Also the imported portfolio of Synergy includes Barcelo rum, Amarula liqueur, Milagro tequila, brandy "Tsar Tigran", "Yerevan Traditional" and the balms line of Latvijas balzams.

The combination of strong portfolio of brands, strong production base and developed sales system supports Synergy`s competitive advantages and profound organic growth year on year.