OREANDA-NEWS. RusRating has assigned a credit rating to OOO FINRATE (Moscow). The rating is “BBB” on the national scale and “BB” on the international scale, in both cases with a stable outlook.

The rating is based on a high anticipated operating margin and high internal rate of return on a real estate development project.

Constraining factors include high uncertainty risks associated with a new development project in its early stages, a high debt burden and narrow market positions.

OOO FINRATE is a private-sector limited liability Russian company whose sole owner is Maxim Sergeyevich Astrakhantsev. A professional real estate developer, it has been involved in construction projects in Russia for some time. The Company was registered in the year 2000 and initially its business centred on the purchase and resale of real estate plus serving as a financial intermediary. Since the fall of 2012 it has been the sole owner of OAO Krasnaya Presnya, a fruit and vegetable warehouse facility in Moscow's Krasnaya Presnya district. Plans call for the development of a large-scale retail and logistics complex.

At this time the Company's debt burden is very high and its operating margin low. Cash flows are expected to increase considerably once the development project is complete, allowing the Company to cut its debt burden and improve operating returns. Its principal assets are OAO Krasnaya Presnya shares and accounts receivable (investments in renovating the warehouse facility and claims under sales contracts). Borrowed funds account for the bulk of liabilities; of this more than half originates with the above-mentioned subsidiary and the remainder with Peresvet Bank. Risk sensitivity is elevated. Liquidity is sufficient.