OREANDA-NEWS. National Rating Agency has affirmed its national scale 'AA' credit rating on the Cyprus-based O1 Properties Limited (O1 Properties) with a stable outlook. At the same time, it has withdrawn its global scale credit rating on O1 Properties due to the company's decision to stop participating in the rating process in respect of this rating. The company's first-time ratings from NRA (the national scale 'AA-' and global scale 'iBB+ credit ratings) were assigned on Oct. 31, 2012. They were upgraded to 'AA/iBBB-' on June 19, 2014 and affirmed at the new level on Aug. 26, 2015.

The rating is supported by the company's adequate equity, new partners-turned-shareholders (ICT Group and Goldman Sachs), effective growth strategy, business portfolio containing high-quality assets, and its fairly conservative financial policy. NRA notes O1 Properties' strong corporate governance practices. The company generates reasonably stable cash flows and demonstrates solid profitability. It is exposed to moderate operational and market risks. Its tenant base includes many of Russia's largest companies and a number of globally renowned organizations.

The rating is constrained by the worsening economic environment in Russia, that has already affected the commercial property market; certain market trends that may bring down the value of properties in the company's portfolio; low market liquidity of real estate at the moment and the expected decline of the business center occupancy rate, that may pressure the company's rental flows. However these risks are mitigated by the company's diversified tenant base, predominantly long-term lease agreements and the higher-than-market-average occupancy rate.