OREANDA-NEWS. National Rating Agency has affirmed its national and global scale credit ratings on the Cyprus-based O1 Properties Limited (O1 Properties) at ‘AA’ and ‘iBBB-’ respectively. The ratings fall in the “Holding and Financial Companies” section of NRA’s rating list. O1 Properties’ first-time credit ratings from NRA — ‘AA-’ on the national scale and ‘iBB+’ on the global scale — were assigned on Oct. 31, 2012. They were raised to ‘AA’ and ‘iBBB-’ respectively on June 19, 2014.

The rating is supported by the company’s strong and improving capitalization, new partners-turned-shareholders (ICT Group and Goldman Sachs), effective growth strategy, business portfolio containing high-quality assets, and fairly conservative financial policy. NRA notes O1 Properties’ strong corporate governance practices. The company generates reasonably stable cash flows and demonstrates solid profitability. It is exposed to moderate operational and market risks. Its tenant base includes many of Russia’s largest companies and a number of globally renowned organizations.

The ratings are constrained by the worsening economic environment in Russia, that has already affected the commercial property market; certain market trends that may bring down the value of properties in the company’s portfolio; significant business activity decline, and, hence, low market liquidity of real estate at the moment.

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