The stable outlook reflects CareEdge Global’s view that MGKL will continue scaling up its business while maintaining financial metrics and liquidity.
The rating is supported by MGKL’s position as Russia’s largest pawnshop business. The company has demonstrated a high growth trajectory in recent years, its branch network has grown from 17 locations in 2019 to more than 200 today. The company diversified into resale of pre-owned goods and trading of precious metals.
Resale is now the largest contributor to net profitability, with gross margins above 50% and net margins above 20%. The company also plans to expand its resale segment through a dedicated online platform, aimed at widening its customer base and enhancing market penetration.
Aleksey Lazutin, CEO of PJSC MGKL, said that India’s strong domestic demand, rapid digitalization, and deepening financial system make it a promising market for long-term partnerships.”This rating validates our resilience and growth potential beyond Russia. It opens new opportunities in friendly countries, such India, including wider access to capital and further business expansion”
Ankit Kedia, Senior Director of CareEdge Global, highlighted that CareEdge Global is pleased to assign a global scale credit rating to PJSC MGKL. “The rating reflects an assessment of MGKL’s credit profile in a global framework and is not comparable with national scale ratings. The rating of PJSC MGKL is based on objective, responsive, and globally relevant methodologies”