10.12.2014, 16:23
RusRating places OOO Artsistemstroi on watch list
OREANDA-NEWS. RusRating has placed OOO Artsistemstroi on its rating watch list. This means that the rating outlook could change (to either “positive” or “negative”) in response to additional information received from the Company or from public sources.
The rating is based on a potentially high operating margin and internal rate of return on the Company’s real estate development project and stable financial support from the parent group.
Constraining factors include the cessation of work on the Arkhangelskoye residential complex in response to realised legal risks; high uncertainty associated with a new real estate development project in its early stages; a very high debt burden; and uncertain conditions in the residential real estate market.
About the Company
OOO Artsistemstroi is the real estate developer behind the elite 98 900 square metre Arkhangelskoye residential project located in the south-west of Arkhangelskoye town (Krasnogorsk district, Moscow region). The Company is owned by Cyprus-registered Bowron Holdings Ltd. and has close ties to the real estate developer ZAO Peresvet-Invest.
At this time operations have halted in response to the cessation of work on the Arkhangelskoye project. The Company’s debt burden is very high and revenues are insignificant. Cash flow gaps are possible in the longer term and overall risk sensitivity is elevated. Revenues could increase substantially if the development project proceeds, leading to stronger cash flows, significantly reducing the debt burden and raising the operating margin. On the basis of official accounts assets consist mainly of financial investments in debt instruments plus accounts receivable and material reserves.
The rating is based on a potentially high operating margin and internal rate of return on the Company’s real estate development project and stable financial support from the parent group.
Constraining factors include the cessation of work on the Arkhangelskoye residential complex in response to realised legal risks; high uncertainty associated with a new real estate development project in its early stages; a very high debt burden; and uncertain conditions in the residential real estate market.
About the Company
OOO Artsistemstroi is the real estate developer behind the elite 98 900 square metre Arkhangelskoye residential project located in the south-west of Arkhangelskoye town (Krasnogorsk district, Moscow region). The Company is owned by Cyprus-registered Bowron Holdings Ltd. and has close ties to the real estate developer ZAO Peresvet-Invest.
At this time operations have halted in response to the cessation of work on the Arkhangelskoye project. The Company’s debt burden is very high and revenues are insignificant. Cash flow gaps are possible in the longer term and overall risk sensitivity is elevated. Revenues could increase substantially if the development project proceeds, leading to stronger cash flows, significantly reducing the debt burden and raising the operating margin. On the basis of official accounts assets consist mainly of financial investments in debt instruments plus accounts receivable and material reserves.
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