OREANDA-NEWS. RusRating has lowered the credit rating assigned to ZAO Stroitemp’s 01 series bonds from "BB" to “CC” on the national scale, with a stable outlook.

According to the agency, the rating cut reflects the realisation of regulatory risks.

The rating is based on backing in the form of a public put option provided by OOO Tekhnomark covering the entire bond series together with coupon revenues.

Constraining factors include the high debt burden of the ultimate borrower, difficult anticipated conditions in the metals industry and the lack of additional backing for the bonds.

About the Issue

The interest-bearing, documentary, non-convertible series 01 bonds (reg. no. 4-01-80031-N) have a total nominal value of R5bn and are scheduled for redemption on 13 November 2019 (a maturity of 1820 days). The coupon period is 182 days, with interest payments set at 9% per annum. The issue was organised by Troika-D Bank on behalf of a major financial-industrial group and its beneficiary owners.

The funds generated by the issue were invested in modernisation of the OEU Block No. 2 Anzherskaya-Yuzhnaya coal mine in Kemerovo region. The ultimate borrower is OOO NPO Gidrougol [trs. HydroCoal Production and Research Association LLC]. This differs from the purpose stated prior to the issue.

About the Issuer

ZAO Stroitemp is a private-sector Russian company set up on 10 May 2006 whose General Director is Anton Sergeyevich Zhuravlev. Ownership changed hands in late 2014 and its immediate beneficiary is now OOO Aston Grand, which acts on behalf of a major Russian financial-industrial group whose assets centre on finance, construction, and the management of real estate. Stroitemp is in effect an SPV.

The group centres on Bank Rossiiski Kredit, whose banking license was withdrawn on 24 July 2015.