OREANDA-NEWS. RusRating has assigned a credit rating to OOO Snezhnaya Dolina. The rating is "BB-" on the international scale and "BBB-" on the national scale, in both cases with a stable outlook.

The rating is based on the substantial market value of the Company’s assets, which exceed its own financial debt and interest obligations plus debt and interest on which it has issued guarantees; close business ties between its owners and BFG-Bank and so a high probability of refinancing in the event on unfavourable macro-economic developments; and the competitive price of floor space in the Snezhnaya Dolina retail centre.

Constraining factors include a possible fall in demand for commercial real estate in response to weakening macro-economic conditions in Russia plus a lack of current operating revenues and the resulting high debt burden.

OOO Snezhnaya Dolina is a limited liability company set up in 2013 and a member of the Imagine Estate development group controlled by Denis Vyacheslavovich Mayakov. It owns the 15 970 m2 Snezhnaya Dolina retail centre in Moscow (address: Eletrolitny proezd 3B, 600m from the Nagornaya metro station), where renovations are in progress and floor space is being sold in small lots. The project is scheduled for completion in the fourth quarter of 2015.

Assets consist mainly the Snezhnaya Dolina retail centre, while loans (mainly from BFG-Bank) make up the bulk of liabilities. Over and above its own financial debt (R449mn) the Company has guaranteed R1.73bn in BFG-Bank loans to the affiliated OOO Alyutera and OOO Opttorg, which also invested in the purchase and renovation of the Snezhnaya Dolina facility

The strategy adopted by the Company’s owners calls for selling small blocks of floor space in the Snezhnaya Dolina facility up until late March 2016. The sale price – R185 000 per square metre – is competitive and will cover the Company’s financial debt and annual interest obligations, including conditional obligations under the above-mentioned guarantees.