OREANDA-NEWS. July 30, 2015. RusRating has lowered the credit rating assigned to ZAO Delta-Holding from "BB" to “B+” on the international scale and from "BBB" to “BB+” on the national scale, in both cases with a negative outlook.

The rating cut reflects a shrinking business following the group’s withdrawal from certain lines of business.

The negative outlook is based on a presumed decline in the financial stability of a subsidiary company due to reduced scope for support from the ultimate investor against a background of increased regulatory risks.

The rating is based on close business ties to a major Russian financial-industrial group.

Constraining factors include insufficient capital, low profitability and the current early stage of the group’s oil production projects, whose realisation is highly uncertain.

About the Company

ZAO Delta-Holding is the central company in the ASPEK group, whose origins go back to 1992. Historically its business centred on the sale of cars, the construction of residential and non-residential real estate, and forestry. Currently the group includes a construction and real estate development arm and an arm that holds exploratory rights to promising gold fields in Vologda region. ASPEK-Domstroi is a leader in the Izhevsk residential construction market and also operates the Talisman retail and entertainment complex in that city. The Company’s principal beneficiary is M.Y. Pitkevich, whose father is a former Prime Minister of Udmurtia.

The Company’s assets consist almost entirely of stakes in subsidiary firms and its financial condition is therefore determined by the financial condition of those businesses. Based on official accounts the group’s debt burden is judged high. Assets consist mainly of fixed assets (retail and office property), investments in capital construction and claims on prospective gold production. Risk sensitivity is high. Liquidity is sufficient.