OREANDA-NEWS. September 02, 2015. RusRating has assigned a credit rating to Ardeks (Moscow). The rating is "BBB" on the national scale and "BB" on the international scale, in both cases with a stable outlook.

The rating is based on a loan guarantee provided by the owner of the Mandarin Retail Centre, the market value of whose assets covers the principal due on its own loans plus conditional obligations under guarantees, as well as on close business ties between the Company’s owners and BFG-Credit Bank, which imply a high probability that current loans will be re-financed in the event of unfavourable macro-economic developments.

Constraining factors include a potential fall in demand for commercial real estate due to weakening macro-economic conditions in Russia.

About the Company

Ardeks is a limited liability company set up in 2009 that forms part of the High Street real estate development group. The Company has taken in bank loans, which it used to help finance the purchase and renovation of the 27 300 m2 Mandarin Retail Centre in Moscow (ul. Montazhnaya 9) near the Moscow Ring Road and adjacent to the Schelkovskoye and Otkrytoye highways. The property owner has guaranteed the loans. The facility is currently being renovated and floor space is being sold off in small lots.

Assets consist mainly of accounts receivable (including investments in the Mandarin project). Most obligations take the form of loans extended by BFG-Credit Bank. The debt burden is moderate. Profitability is low. Liquidity is sufficient. High risk sensitivity reflects current conditions in the real estate market.

Strategy calls for the sale of floor space in the Mandarin centre in small lots up until July 2016. The sale price (R190 000 per m2) is competitive and sufficient to cover all associated debt obligations, including guarantees.