OREANDA-NEWS. National Rating Agency has affirmed its national scale credit rating on MIKOS-7 LLC at ‘A’. The rating falls into the “Holding and Financial Companies” section of NRA’s rating list.

The rating is supported by the company’s access to ling-term funding, successful execution of a retail and entertainment complex (REC) construction project, high-quality assets (the Atlantis Gallery REC) and management team with an expertise in commercial property development and management. The company’s affiliation with a group that has financial capability and administrative capacity to support MIKOS-7 in case of distress is another rating strength.

Risk factors include the company’s high debt burden and the fact that its rent income is low relative to the funding amount (although sufficient to cover the loan service costs). The rating is also constrained by our view that the company’s business portfolio is poorly diversified and that adverse trends in the commercial property market may strongly affect MIKOS-7’s rental cash flow and, therefore, its financial result.