OREANDA-NEWS. National Rating Agency has assigned its national scale 'A' credit rating to Biznes-Razvitie (Business-Development) LLC based on its ‘RS3’ support rating, which reflects Krost REIT LLC’s propensity to support the company. Biznes-Razvitie’s stand-alone credit profile is assessed at ‘A-’ on the national scale.

The company’s credit rating falls into the ‘Holding and Financial Companies” section of NRA’s Rating List.

The rating reflects Biznes-Razvitie’s ownership of attractive assets, represented by real estate properties that provide stable rental flows. The management and owners have sufficient qualifications, experience and resources to effectively manage the property complex owned by the company. The rating also recognizes the support from Krost REIT LLC, which has provided us with a comfort letter stating its intent to support Biznes-Razvitie in case of financial distress.

The rating remains constrained by the lack of audited consolidated financials at the holding company’s level, which hinders a reliable assessment of intragroup cash flows and potential diversion of funds through related party transactions, as well as the company’s moderate debt burden and weak equity-to-total assets ratio and financial strength metrics resulting from a low equity level.