OREANDA-NEWS. National Rating Agency has affirmed its national sale 'AA-' credit rating on Silver City LLC.

The rating is supported by the company's assets, whose market value by far exceeds their book value. This allows the company's debt burden to be regarded as reasonable. We also note that Silver City's operating performance metrics are stable and predictable due to predominantly long-standing customer relationships, high operating margin and potential parent group's support in case of need.

These strengths are partly offset by the worsening macroeconomic situation in Russia. Rising inflation, ruble devaluation, tightening monetary policy affect, among other things, the commercial property market. The rising number of premium-class commercial properties at a time of stagnating demand reflects negative market trends that may bring down the company's property costs or rental flows through lower rent rates. These factors may considerably slow down the company's long-term growth and impair its access to funding. NRA also note Silver City's modest balance-sheet capital adequacy and loss posted for the nine months ended September 30, 2014 as a result of sizable interest paid on obtained funds. Besides, the provider of funds was a related party.