OREANDA-NEWS. RusRating has placed the credit rating assigned to the ISU Investitsii v Buduscheye mortgage participation certificates – "BB-" on the national scale with a stable outlook – on its watch list. This means that the rating could change (either rise or fall) in response to additional information received from the Company or identified in public sources.

The rating is based on the significant market value of the property collateral plus close business ties between the ultimate borrowers and a major financial-industrial group with (on RusRating’s estimate) more than R150bn in assets.

Constraining factors include the high ratio of current loan balances to the value of the collateral, the borrowers’ lack of revenues and high debt burden, and the absence of cash flows generated by the property.

About the Certificates

The ISU Investitsii v Buduscheye [trs. Investments in the Future] mortgage participation certificates are managed by UK OOO ForTreid [trs. ForTrade Management Company LLC], which holds Federal Financial Markets Service license 21-000-1-00963 dated 27 August 2013 to manage investment funds, mutual investment funds and non-state pension funds. The rules governing their management were registered on 25 December 2014 (state registration no. ISU-0052). The value of the underlying collateral at 30 April 2015 was R11.34bn, with the mortgages paying 12% per annum. The loan and mortgage contracts underlying the certificates close on 31 October 2024.

About the Mortgages

The mortgages were extended to the limited liability companies OOO BITEKS, OOO VersKomplekt, OOO VOSTOK-SERVIS and OOO GrandStroiKapital and are backed by plots of land in Moscow region (Odintsovo district, Barvikhinski rural area, Zhukovka village) and are held by OOO SENDERFOL and OOO PROFFINANS.

The BITEKS mortgage covers a 28 643 m2 plot of land with an assessed value of R3.12bn. The VersKomplekt mortgage covers a 22 381 m2 plot of land with an assessed value of R3.74bn. The VOSTOK-SERVIS mortgage covers a 25 213 m2 plot of land with an assessed value of R4.29bn. The GrandStroiKapital mortgage covers a 24 196 m2 plot of land with an assessed value of R2.60bn.

About the Borrowers

All four companies were set up in 2014 in connection with a project to develop the above-mentioned land in Odintsovo district.