OREANDA-NEWS. National Rating Agency is withdrawing its 'A' credit rating on TRK Krasnogorsk LLC due to expiry of the contract and the company's decision to stop participating in the rating process. On withdrawal, we assign the company a credit rating of 'BBB+' based on the results of our analysis of Sept 30, 2014.

NRA note the company's markedly weakened financial profile, rising debt leverage and falling revenue. We also note that earlier TRK Krasnogorsk got a US dollar denominated loan from NOMOS-Bank to fund the second phase of its Shopping Mall. Additionally, its rental rates for commercial property have been tied to the US dollar, while the tenants have often asked the company to fix the exchange rate or shift to ruble pricing.

The second phase of the company's JUNE Shopping Mall in Krasnogorsk was to be completed and commissioned in December 2014. However, the mall has not been put into operation yet, and the interior finishing work is still on. The tenant's occupancy percentage of rentable areas is not high.