OREANDA-NEWS. RusRating has lowered the credit rating assigned to the BO-01 bond series issued by OOO Promnefteservis from "B" to “C” on the international scale and from "BB" to “CC” on the national scale, in both cases with a stable outlook.

According to the agency, the rating cut reflects the realisation of regulatory risks.

The rating is based on backing in the form of a public put option provided by OOO Tekhnomark covering the entire bond series together with coupon revenues, plus backing in the form of a capital stake in the real estate developer whose project was financed by the bonds.

Constraining factors include high risks associated with an investment project in its early stages, uncertainty in the residential property market and the lack of additional backing for the bonds.

About the Issue

The five million non-convertible interest-bearing centrally-held documentary bearer exchange bonds (series BO-01) have a nominal value of one thousand roubles each and are due for redemption 1820 days after the start of placement (on 21 November 2019). Distribution took place by open subscription, beginning on 27 November 2014. The securities include provisions for early redemption on the initiative of both issuer and bondholders. The issue was organised by IK Ronin.

The funds have been invested in a 100 000 m2 low-rise comfort-class residential complex (Bolshoi Rogachevski Kvartal) near the city of Lobnya in Moscow region. The general contractor on the project is OOO “Investitsionno-Stroitelnaya Kompania BRK” [trs. BRK Investment-Construction Company LLC], which has close business ties to a major financial-industrial group.

The Issuer had previously placed a R3bn bond series (4-01-36376-R dated 17 November 2009). All coupon obligations were met in full and on schedule. The bonds were redeemed on 5 December 2014.

About the Issuer

OOO “Promnefteservis” is a Russian SPV company registered in 2009 that issues bonds on behalf of the above-mentioned financial-industrial group. It conducts no other business activity. V.I. Dzyuba has been General Director of the Company since February 2015. The Company's owner is OOO Legion-A, acting on behalf of the above-mentioned financial-industrial group, which centres on Bank Rossiiski Kredit (BRK). BRK’s banking license was withdrawn on 24 July 2015.