OREANDA-NEWS. RusRating has assigned a credit rating to OOO Niagara (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 strong operating margin and internal rate of return on its real estate development project plus solid business ties to Peresvet Bank.

Constraining factors include high uncertainty risks in connection with a development project still in its early stages, a high debt burden and narrow market positions.

OOO Niagara is a private-sector limited liability Russian real estate development company registered on 27 August 2009. Its current project is the construction of 55 800 square metres of residential housing in Mytischi (Moscow region). The Company is co-owned by M.A. Bashkirtsev, T.M. Leonovets, and S.A. Shardin and has close business ties to Peresvet Bank.

At this time the Company's debt burden is very high and its operating margin low. Cash flow should increase substantially once the sale of property begins, significantly reducing its debt burden and boosting its operating margin. The balance sheet is dominated by fixed assets (investments in construction) plus accounts receivable. External liabilities consist mainly of funds borrowed from Peresvet Bank and accounts payable, which reflect co-investments in the construction project. Leverage is high. Liquidity is sufficient.