OREANDA-NEWS. RusRating has assigned a rating of "BBB-" (national scale) with a stable outlook to mortgage participation certificates ISU-11000

The rating is based on the healthy quality of the ultimate borrowers (as a result of close business ties to a major Russian financial-industrial group) and lease revenues from the underlying property that are sufficient to cover mortgage payments.

Constraining factors include the limited liquidity of the mortgaged agricultural land.

About the certificates

The certificates (individual identification number ISU-11000, state registration number ISU-0016, ISIN RU000A0JUP71) and underlying mortgages are managed by OOO UK BIN FINAM Grupp [trs. BIN FINAM Management Company Group LLC], which is licensed to manage investment funds, mutual funds and non-state pension funds (FFMS license 21-000-1-00007 dated 26 August 1996). Rules governing their management were registered with the Central Bank on 15 May 2014. The securities have been admitted to trading on MICEX with a top-level listing. The mortgage collateral is valued at R6.96bn and the underlying mortgages pay interest returns ranging from 1.25% to 16% per annum. Their duration is 3.12 years.

About the mortgages

The ISU securities are backed by mortgages taken up by three limited liability companies - OOO Rassvet, OOO Terra and OOO Dedal Grupp - plus ZAO "Biznes, Finansy, Nedvizhimost" [trs. Business, Finances, Real Estate CJSC].

The OOO Rassvet mortgage covers 102.68 million square metres of agricultural land in Kolyshei district (Penza region). The value of the property (as determined by an independent assessor) is R831.7mn.

The OOO Terra mortgage covers 91.50 million square metres of agricultural land in Malaya Serdoba district (Penza region). The value of this property (as determined by an independent assessor) is R841.8mn.

The OOO Dedal Grupp mortgage covers 90.58 million square metres of agricultural land in Belinski district (Penza region). The value of this property (as determined by an independent assessor) is R833.3mn.

The ZAO "Biznes, Finansy, Nedvizhimost" mortgage covers a 25 136.9 square metre non-residential building owned by the company and located in the city of Moscow (address: Warsaw Highway 25A str. 6) plus 47 653 square metres of adjacent land (Warsaw Highway 25A str. 2, 3, 5, 6, 12, 13, 14) held by the company under lease. The value of these assets (as determined by an independent assessor) is R8.89bn.

About the borrowers

OOO Rassvet, OOO Terra and OOO Dedal Grupp were set up in 2009-2012 for the purpose of leasing out agricultural land. They have close ties to a major Russian financial-industrial group with interests in banking, oil production and refining, and real estate, particularly in Moscow and Moscow region. The group's assets exceed R0.5trn.

ZAO "Biznes, Finansy, Nedvizhimost" is a Russian real estate development company registered on 25 November 2011. It has close ties to the same major Russian financial-industrial group.