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

The rating is based on the possibility of financial support from the Company’s beneficiary owners and its parent real estate development group; close between ties with the creditor bank; and a high internal rate of return on its project.

Constraining factors include plans to finance construction work on a co-funding basis; high risks associated with the early stages of a new development project; and uncertainty in the real estate market.

OOO Basfor is a limited liability Russian company that controls the Dyuny residential project, which involves the construction of comfort-class flats with 175 000 m2 in floor space on the site of the former Dyuny health spa in northern Sestroretsk (St. Petersburg). A construction permit has been issued. Work is scheduled to begin in the third quarter of 2016 and should be completed in the third quarter of 2022. The project will be handled by Seven Suns Development (formerly known as O2 Development), which specialises in residential construction in Leningrad region.

The Company’s debt burden is high, but is expected to fall in response to a substantial rise in cash flow as the project proceeds. Assets consist mainly of property (a plot of land) and goodwill. Sensitivity to financial risks is elevated.