The international ratings agency said in a press release the rating was constrained by Renova's concentration on a few large Russian assets, low share of liquid assets, and exposure to its majority shareholder.
"The ratings are, however, supported by the group's successful growth and profitability in recent years on the back of Russia's economic development, and substantial progress in improving portfolio diversification and liquidity," said S&P credit analyst Elena Anankina.
The agency said it expected Renova to stick to its policy of keeping net debt below 25% of portfolio value and interest coverage by incoming dividends at 3x-5x.
According to S&P, the rating upside will largely depend on the extent of the expected gradual increase in Renova's portfolio diversity and liquidity and the general development of the Russian economy, where the company's investment focus is expected to stay.
The ratings would come under pressure in the event of financial policy slippages, or if Renova's portfolio incurs substantial losses.
"Our base-case scenario does not involve the sale of the group's core holdings and subsequent reinvestment of proceeds," the agency added.
Renova, controlled by tycoon, Viktor Vekselberg, is a stakeholder and strategic investor in leading Russian stand-alone and holding companies in the metallurgical, oil, machine engineering, mining, chemical, construction, housing, utilities and financial sectors.
