RusRating Assigns Credit Rating to ZAO RegionInvest (Moscow)
OREANDA-NEWS. RusRating has assigned a credit rating to ZAO RegionInvest (Moscow). The rating is “BBB” on the national scale and “BB” on the international scale, in both cases with a stable outlook.
According to the agency, the rating is based on an anticipated high operating margin and internal rate of return on a real estate development project plus solid business ties to Peresvet Bank.
Constraining factors include high uncertainty risks connected with a new development project still in its early stages, a high debt burden and narrow market positions.
ZAO RegionInvest is a private-sector Russian company wholly owned by Yuri Sergeyevich Astrakhantsev. A professional real estate developer, it has close business ties to Peresvet Bank. The Company was registered in July 2008 and initially traded in securities and real estate. Currently it is developing the number two micro-district on Bondarev Street in Dzerzhinski (Moscow region).
At this time the Company's debt burden is very high and its operating margin low; revenues are insignificant. Cash flows should increase substantially as developed property is made available for sale, causing revenues to rise several times over and boosting the operating margin. Assets consist mainly of materials, a category that includes incomplete construction projects and old buildings slated for demolition. Investments in construction - including a loan from Peresvet Bank and funding for the development project from Pilot Consulting - account for the bulk of liabilities. Risk sensitivity is elevated. Liquidity is sufficient.
RusRating is an independent rating agency accredited by the Ministry of Finance of the Russian Federation. The company was set up in 2001 and is a member of the GlobalRating group. Its primary services are the provision of credit ratings to banks, industrial firms and their debt instruments; it also provides analysis of various aspects of the Russian financial sector.
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