RusRating puts OOO NIAGARA on watch list
The rating is based on close business ties to Peresvet Bank, solid ties to a major real estate development group, and successful experience with major residential construction projects.
Constraining factors include high uncertainty risks associated with a new development project in its early stages, a very high debt burden and a narrow market presence.
OOO Niagara is a private-sector limited liability Russian real estate development company whose beneficiary owners are three private individuals who, in RusRating’s opinion, have close business ties to the Peresvet group and Peresvet Bank. The Company was registered on 27 August 2009 and originally traded in real estate and securities. Its current project involves development of the Druzhba residential neighbourhood in the city of Mytischi (Moscow region).
The Company’s business model appears reasonably stable. The main positive factors are the timely receipt of official permission for construction and support from Peresvet Bank. The debt burden is very high. No assessment of the operating margin or ROIC are possible at this time in the absence of active work on the Company’s only project. The balance sheet is dominated by fixed assets (land holdings) plus accounts receivable. External liabilities consist mainly of funds borrowed from Peresvet Bank and accounts payable. Overall risk sensitivity is judged high. Liquidity is sufficient.
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