S&P rates LenSpecSMU B

Standard & Poor's said it assigned its B long-term and B short-term corporate credit ratings and its ruA-Russia national scale rating to CJSC SSMO LenSpecSMU. The senior unsecured Russian ruble bonds previously issued by guaranteed subsidiary CJSC CUN LenSpecSMU were rated ruA- on the Russia national scale.

The outlook is stable.

The ratings are constrained by the company's aggressive growth appetite, complex regulatory environment, lack of administrative transparency and predictability in Russia and the company's limited market diversification and size, S&P said. A further constraining factor is the cyclical nature of the construction and development industry, the agency added.

These risks are moderated by robust industry growth in Russia combined with the company's vertically integrated, competitive business model, sizable market position and established operating track record, S&P said.

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