OREANDA-NEWS. RusRating has placed the credit rating assigned to OOO TD Glavkachestvo – "BB" on the international scale and "BBB" on the national scale, in both cases with a negative outlook – on its watch list. This means that the rating or rating outlook 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 loan guarantees provided by the owner of the MetroMall2 retail facility, the market value of whose assets exceed the Company’s debt and annual interest obligations, as well as its own debt and interest obligations (including on all guarantees); plus close business ties between the Company’s owners and BFG-Credit Bank and so a high probability of refinancing in the event of unfavourable macro-economic developments.

Constraining factors include a possible decline in demand for commercial real estate in response to a weakening macro-economic environment in Russia; the absence of current operating revenues; and the resulting high debt burden.

The negative outlook reflects the high (in RusRating’s view) likelihood that the project will be suspended in response to current uncertainty in the Moscow market for commercial real estate, plus a low occupancy rate.