OREANDA-NEWS. RusRating has assigned a credit rating to AO Mosstroi-17 (Moscow). The rating is "BB" on the international scale and "BBB" on the national scale, in both cases with a stable outlook.

The rating is based on an established contract base and extensive experience in construction.

Constraining factors include a low operating margin and an elevated debt burden.

About the Company

AO Mosstroi-17 is a private-sector Russian joint-stock company that took over the Soviet era Moscow Construction Trust 17. It specialises in constructing health care and other social service facilities, residential buildings, engineering infrastructure and individually-designed projects, including the use of cast-in-place concrete in both residential and industrial facilities. The Company acts as a general contractor, technical supervisor and project designer. Sergei Anatolievich Dubatkov is the sole shareholder. Currently Mosstroi-17 is executing government contracts for the construction of three residential buildings on Prospekt Vernadskogo plus two infrastructure projects and the development of a new residential neighbourhood in Severnoye Chertanovo. The government contracts (between the Company and the City of Moscow Construction Department) are worth approx. R3bn.

Mosstroi-17’s debt burden is elevated and its operating margin is low, which is typical for a construction firm. Liabilities consist mainly of accounts payable, which reflect advance client payments for work in progress; the Company also holds a loan from Peresvet Bank. Most assets are accounts receivable, which reflect anticipated payments for work in progress (including under government contracts); the balance sheet also includes incomplete structures, material reserves (construction materials) and a deposit placed with Peresvet Bank. Liquidity is sufficient. Holdings of highly-liquid assets are minimal. Risk sensitivity is elevated.