OREANDA-NEWS. RusRating has changed the outlook on OOO Expo Plaza’s credit rating from “stable” to “negative” in response to uncertain demand for retail and exhibition space and the resulting impact on revenues and prospects for servicing debt. The rating itself is unchanged at "BB" on the international scale and "BBB" on the national scale.

The rating is based on strong business ties to B&N Bank plus quality commercial real estate held on the Company’s balance sheet.

Constraining factors include a high debt burden and narrow market positions.

About the Company

OOO Expo Plaza is a limited liability private-sector Russian real estate development company registered on 3 June 2013. It forms part of the GK Bashinvest group, which includes a company that regularly organises national and regional exhibitions in Ufa (Bashkortostan); other assets include the city’s central park, complete with modern attractions and eating facilities. Currently Expo Plaza is completing construction of the 46 300 m2 VDNKh Expo retail and expo complex in Ufa; work has been in progress since the fall of last year.

At this time the Company’s debt burden is very high and its operating margin modest. Financing is ultimately drawn from B&N Bank. The Company’s principal asset is the VDNKh Expo facility, which is still under construction. Leverage is high. Liquidity is sufficient. Overall risk sensitivity appears elevated.