OREANDA-NEWS. August 03, 2015. RusRating has placed the credit rating assigned to Delta-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 strong backing from a broader Russian financial-industrial group plus successful experience in the Russian financial markets.

Constraining factors include low capital adequacy and weak profits.

About the Company

Delta-Finance is an SPV company set up to access funds in the Russian securities market on behalf of its parent, ZAO Delta-Holding, a construction firm that has handled both residential and non-residential projects. The Company recently channelled funds into the purchase of a business that is acquiring a gold exploration license in Vologda region. The principal owner of ZAO Delta-Holding is M.Y. Pitkevich, whose father is a former Prime Minister of Udmurtia. 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. External funding is drawn mainly from bond issues. Assets consist for the most part of loans to companies with links to the Company’s ultimate beneficiaries. Profitability is weak. Liquidity is sufficient. Risk sensitivity is moderate.