OREANDA-NEWS. RusRating has assigned a credit rating to OOO Artsistemstroi (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 future high operating margin and internal rate of return on the Company's real estate development project, as well as positive trends in the residential property market.

Constraining factors include a high debt burden, narrow market positions and the fact that the real estate development project is still in its initial stages.

About the Company:

OOO Artsistemstroi is the real estate developer behind the elite 98 900 square metre Arkhangelskoye residential project located in the south-west of Arkhangelskoye town (Krasnogorsk district, Moscow region). The Company is owned by Cyprus-registered Bowron Holdings Ltd.

At this time the Company's debt burden is high and revenues are insignificant. Cash flow gaps are possible in the longer term and overall risk sensitivity is elevated. At the same time revenues are expected to increase several times over as the development project proceeds, leading to stronger cash flows, significantly reducing the debt burden and raising the operating margin. On the basis of official accounts assets consist mainly of financial investments in debt instruments plus accounts receivable and material reserves.