OREANDA-NEWS. National Rating Agency has affirmed its 'A+' credit rating on Morton-RSO LLC. The outlook for the rating is Stable. NRA's first-time credit rating of 'BBB+' was assigned to MORTON Group on Sep. 10, 2011, then raised each consecutive year (to 'A-'on Sep. 10, 2012 and to 'A', with extension to Morton-RSO LLC, on Dec. 3, 2013). NRA upgraded Morton-RSO LLC to 'A+' on Dec. 11, 2014.

The affirmation is driven by MORTON Group's consistent business growth in 2014-15, despite the challenging economic environment, and its leading position in Moscow Oblast's property development market. NRA also notes Morton-RSO's brisk entry into the premium market of Moscow and its decision to embark on as many as five large residential property development projects. The rating recognizes MORTON Group's long track record of successful operations, active participation in public-private partnership programs, and its systemic importance. The fact that the Group is developing its own housebuilding industrial complex (currently one of the largest in Russia), freeing itself from the need to hire subcontractors, is another rating strength.

The rating remains constrained by the lack of audited consolidated financials at the Group's level (although the Group reportedly is in the process of their preparation with the assistance of KPMG). Other weaknesses include the Group's elevated debt level stemming from its business expansion and the growing number of projects under construction. The residential construction market situation remains unstable. That said, the Group maintains its sales at a pre-crisis level, despite these challenges. At the same time, the Group is sensitive to the health of the mortgage market, as around one-half of its products are sold using mortgage schemes.