OREANDA-NEWS. National Rating Agency has affirmed its national scale 'AA' credit rating on Avion Corporate Business Center Limited (Avion) with a stable outlook. At the same time, it has withdrawn its global scale credit rating on Avion due to the company's decision to stop participating in the rating process in respect of this rating.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 Dec. 9, 2014. In accordance with NRA's rating methodology, Avion's rating is based on the O1 Properties group rating model, as Avion is a special purpose vehicle, possessing the building that houses one of the group's business centers and falls within O1 Properties' consolidation scope.

The rating is supported by the high quality of assets controlled by Avion, and the stability of the company's rental cash flows. Avion's parent group is adequately capitalized, and NRA notes O1 Properties' new partners-turned-shareholders (ICT Group and Goldman Sachs), strong corporate governance practices and effective and transparent growth strategy. The group holds a leading position in the commercial property market, its cash flows are expected to be stable in the long term, and its profitability metrics are strong. O1 Properties is exposed to moderate operational and market risks. Its tenant base includes many of Russia's largest companies and a number of globally renowned entities.

The rating is constrained by the worsening economic environment in Russia that has already affected the commercial property market and certain market trends that weigh on the company's cash flows and bring down the value of its properties. O1 Properties is also affected, though at a lesser extent, by the adverse market situation, as the occupancy rate of its business centers is declining, rental rates tend to decrease, and the dollar-denominated cost of its properties is falling.