OREANDA-NEWS. July 27, 2015. RusRating has assigned a credit rating to U.F.G.Agro (Moscow). The rating is "B+" on the international scale and "BB+" on the national scale, in both cases with a stable outlook.

The rating is based on the substantial market value of the assets being acquired by the Company.

Constraining factors include the limited liquidity of those same assets and the relatively short term of the Company’s debt obligations.

About the Company

OOO U.F.G.Agro was registered on 18 May 2015 specifically to acquire real estate for the purposes of resale. Its ultimate beneficiaries are partners in a major investment company. Once the transaction is complete its assets will consist mainly of roughly 3000 ha of land near the town of Ramenskoye in Moscow region, of which two thirds is classified as agricultural land. Roughly one third is located within town limits, but the vast majority is nevertheless zoned for agricultural use. Other assets include cattle farm buildings plus transport and office equipment. According to Nexia Pacioli, these assets in total are worth R16bn. In RusRating’s view a fair market value would be around R4bn.

Once the purchase is complete the main component of liabilities will be a R2bn loan from PromsvyazBank extended at 14.5% per annum for 1.5 years.

The liquidity of the assets in question is low. Risk sensitivity is elevated.