OREANDA-NEWS. December 07, 2015. RusRating has assigned a credit rating to Astoria (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 on the Knightsbridge residential construction project; a high internal rate of return on the project; healthy debt coverage; largely complete construction work; the high market value of the Company’s assets; and substantial scope for support from the Company’s owners.

Constraining factors include insufficient informational and financial transparency at the parent real estate development group plus the significant volume of off-balance guarantees extended by the Company.

Astoria is a limited liability company that belongs to a larger real estate development group. The Company itself buys and sells real estate assets on behalf of the group.

At this time Astoria’s principal asset is accounts receivable on the sale of land, while most liabilities take the form of accounts payable linked to the purchase of land. The Company has extended \\$16mn in off-balance guarantees on a loan extended by PromsvyazBank to Eurofinance, a member of the same development group. Astoria controls OOO Khlebovzavod No. 6 [trs. Industrial Bakery No. 6 LLC], which is acting as developer on the Knightsbridge project. The project involves construction of a 86 691 m2 facility that includes 47 472 m2 in premium-class Moscow flats at ul. Kooperativnaya 6. Construction of the residential space is complete, along with cafes and parking, and more than 40% of the flats have already been sold. Construction work on a kindergarten and wellness centre is still in progress.