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

The rating is based on a stable financial condition and a loan guarantee provided by the owner of the Praga Retail Centre plus close business ties between the Company’s owners and BFG-Credit Bank and the resulting high probability of re-financing or repayment by the guarantor in the event of unfavourable macro-economic developments.

Constraining factors include a high debt burden; limited financial transparency; and falling demand for commercial real estate as a result of deteriorating macro-economic conditions in Russia.

About the Company

The limited liability company OOO Regionprodukt was set up in 2011 and belongs to the High Street real estate development group, which has close ties to BFG-Credit Bank. In 2014 the Company took over all rights and obligations of OOO SK Genpodryad, making it a co-investor in the 14 000 m2 Praga Retail Centre located in Moscow at Rossoshanski proezd 3. The facility opened late last year.

Inventory and accounts receivable are the main components of assets, while liabilities consist mainly of loans from BFG-Credit Bank and accounts payable. The Company’s debt burden is high. Liquidity is low. Risk sensitivity is high, reflecting conditions in the real estate market.

Strategy calls for the sale of floor space in the Praga centre in small lots up until the end of 2015.