OREANDA-NEWS. National Rating Agency has affirmed its 'AA-' national scale credit rating on Prime Finance LLC's (OOO 'Prime Finance') series 01 bonds (Reg. No. 4-01-36424-R, ISIN: RU000A0JU179) and assigned a negative rating outlook.

The rating is underpinned by the nonpublic guarantees from beneficial owners, issuer's high-quality assets and profitable operations. Payments to be made over the life of a bond are secured by the issuer's long-term stable positive cash flow. The Agency estimates the investment in a form of loan to the '01 Properties' company as being of high-qaulity, given the high solvency of the borrower.

The rating is constrained by the high macroeconomic risks that pressure the credit quality of Russian issuers in general. Due to the unbalanced maturity of the bond issue and the portfolio's duration, financial performance of the company is affected by liquidity and market risks.

Mainly long-term investments that are made by the '01 Properties' company in its projects come into conflict with the urgency of bond issue. The negative rating outlook is also based on the Agency's expectations of further increasing macroeconomic and market risks, as well as the negative trend in the real estate market.