OREANDA-NEWS. National Rating Agency has affirmed its national scale 'A' credit rating on Businovsky Meat-Processing Plant OJSC (BMPP).The outlook for the rating is Stable. NRA assigned its first-time individual credit rating of 'A' to BMPP (falling into the "holding and Financial Companies" section of NRA's rating list) on Dec. 10, 2013 and affirmed it on Dec. 10, 2014.

The rating is supported by the company's premium assets withd at a high market value, markedly exceeding their book value, steadily growing income from its asset rent-out and storage services, good liquidity and financial strength metrics, comfortable debt maturity profile (long tenure of debt financial instruments), zero currency risk, transparent ownership structure, as well as owners with a capacity and capability to provide extraordinary support.

The rating is constrained by the company's asset and funding base concentration in a single business segment, excessive reliance on key tenants, and net profit marginlow level, associated with growing debt service expenses, increased debt size and rising funding costs. NRA alst notes the deteriorating market conditions and market trends that may affect the value of BMPP's assets or its income from asset rent-out and other services, in addition to retarding the company's long-term growth and complicating its access to sources of finance (the increased funding costs have already prolonged the delivery of BMPP's renovation project).