OREANDA-NEWS. RusRating has assigned a credit rating to OOO Melanzh (Moscow). 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 significant market value of the assets held by the loan guarantor (sufficient to cover both principal and interest payments on all associated debt) plus close business ties between the Company’s beneficiary owners and BFG-Credit Bank, which suggests a high probability of re-financing in the event of unfavourable macro-economic developments.

Constraining factors include a possible fall in demand for commercial real estate due to macro-economic uncertainty in Russia; the Company’s high debt burden; and low current occupancy rates at both the Konfetti and Imagine Plaza facilities.

About the Company

OOO Melanzh is a limited liability company set up in 2010 that has accessed bank loans and channelled the funds into the purchase and renovation of the Konfetti retail centre and the Imagine Plaza business centre. Although Melanzh does not itself have a stake in the property, the assets in question have been pledged as collateral. Furthermore, the property owner and its principal shareholder have both pledged to back the loans. Together the Konfetti and Imagine Plaza centres cover 52 100 m2 and are located at ul. Nagatinskaya 16 in Moscow. Renovations are nearing completion and floor space is being sold off in small lots.

Assets consist mainly of accounts receivable, which ultimately represent investments in the purchase and renovation of the retail and business centres. Loans from BFG-Credit Bank make up the bulk of liabilities. Liquidity is sufficient. Risk sensitivity is elevated.

Strategy calls for the sale of small portions of both the Konfetti and Imagine Plaza centres over the period to July 2016. The sale price is competitive and at the same time high enough to cover the financial debt of all companies that have invested in the project, including OOO Melanzh.