RusRating assigns credit rating to OOO Agrostil
OREANDA-NEWS. RusRating has assigned a credit rating to OOO Agrostil (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 high anticipated operating margin and net profit margin; the high market value of the assets being acquired; and close business ties to a major real estate development group.
Constraining factors include a high debt burden; the project’s current early stage; modest debt coverage ratios; and a low internal rate of return due to the timing of cash flows.
About the Company
OOO Agrostil is a limited liability company that until recently conducted virtually no business activity. Plans call for acquiring a 100% stake in ZPIFN Praim Nedvizhimost [trs. Prime Real Estate Closed Mutual Real Estate Investment Fund]. The fund in turn has purchased property in elite residential facilities under construction in Moscow at ul. Bolshaya Polyanka 44 and Kozhevnicheski pr., vl. 4 (near the Shlyuzovaya Embankment). The Company has close business ties to a major real estate development group with extensive experience in development projects.
The property in question consist of 18 flats covering 2595 m2 in the Bolshaya Polyanka development and 47 flats covering 2225 m2 in the Kozhevnicheski development. The Company’s purchase of shares in ZPFIN Praim Nedvizhimost will be financed by a R2415.4mn loan extended by Vozrozhdeniye Bank at 13.5% per annum. Its debt burden is currently high but will decline as assets are realised. Sensitivity to financial risks is elevated.
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