OREANDA-NEWS.  National Rating Agency has affirmed its AA- national scale credit rating on Fargo Finance Ltd's (OOO Fargo Finance) series 01 bonds (Reg. No. 4-01-36433-R, ISIN: RU000A0JUFK1) and retained the rating outlook as negative. Implementation of the negative outlook may be carried out as a result of updating the bond credit rating at the end of 2015. The AA- national scale credit rating on Fargo Finance Ltd's series 01 bonds had been originally assigned on March 5, 2014, then affirmed at this level on August 25, 2014, and subsequently affirmed with the negative outlook on January 14, 2015, and June 10, 2015.

The rating is underpinned by the scale and quality of the companys commercial property investment project, accompanied by well-matched assets and liabilities. Among other positive factors supporting the current rating, the Agency highlights partners considerable expertise in issues relating to the development and implementation of commercial property projects in Moscow and their external support.

Weaknesses include the planned absence of any project-related cash flows up until 2016, as well as the increasing market and economic risks that may affect the implementation of the project financed by the company. The lack of internally generated funds makes the issuer and its borrowers dependent on the key partners and project owners funding. The negative outlook is also based on the fact that due to the national currency volatility the tender for chief contractor position had been extended, which has already led to a one-quarter shift in the project timing.

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