OREANDA-NEWS. RusRating has assigned a credit rating to OOO “TRC SHOKOLAD” (Nizhni Novgorod). 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 rate of return on the Company’s real estate development project; the high market value of its principal asset; and close business ties to the Torgovy Kvartal development group, which has substantial experience in retail property.

Constraining factors include a high debt burden at both the Company and its parent group plus uncertain conditions in the real estate market.

OOO “TRC SHOKOLAD” [trs. “Chocolate Retail and Entertainment Centre” LLC] is a de facto member of the Russian real estate development group Torgovy Kvartal, which controls more than 700 000 m2 of retail property across Russia. In mid-2013 the group acquired (via the Company) the 16 000 m2 Shokolad retail and entertainment centre in Nizhni Novgorod, which was opened in December 2003.

The group was established in the year 2000 and forms part of the Eastward Capital holding, whose other assets include the Fizika chain of fitness clubs, Nuvo beauty salons, Happy Land children’s centres and the Coffee Room chain of coffee shops. In RusRating’s opinion, the group’s principal beneficiary owner is Mikhail Vladimirovich Kirsanov.

At this time the Company’s debt burden is very high. Strong lease income generated by the Shokolad centre – which accounts for the bulk of assets – will allow it to cut this burden substantially.