OREANDA-NEWS. August 03, 2015. RusRating has placed the credit rating assigned to UNGP-Finance – "BBB-" on the national scale, with a stable outlook – on its watch list. This means that the rating or rating prognosis 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 a strong backing from a broader Russian financial-industrial group plus successful experience in the Russian financial markets.

Constraining factors include low capital adequacy, assets and liabilities highly concentrated by individual counterparty, and weak profits.

About the Company

The main business of UNGP-Finance (formerly known as LR-Invest) is accessing financial market resources that it then extends as loans to back investment projects in the oil and gas sector or real estate. Its sole owner is ZAO Uralneftegazprom (UNGP). The Company’s bonds have been guaranteed by a private individual who formerly had interests in retail car sales, oil, construction and forestry; although no longer formally in a position to exercise control of these assets, in RusRating’s view he remains a beneficiary.

Capital adequacy is low. Bonds account for the bulk of external liabilities, while most assets are loans to companies affiliated with Uralneftegazprom’s ultimate beneficiary owner. Profitability is weak. Liquidity is sufficient. Risk sensitivity is high.