OREANDA-NEWS. National Rating Agency has affirmed its ‘A’ credit rating on Sovincom LLC. The outlook for the rating is Negative. NRA's first-time rating of 'A' was assigned to the company on Dec. 8, 2014. The outlook was Stable.

The affirmation reflects the company's transparency and its cash flows, which currently cover its liabilities. Other rating strengths include Sovincom's ownership of a high-quality asset.

The rating is constrained by the losses incurred by the company and its formally established capital deficit, as well as its high debt level in the context of low revenues. The Negative rating outlook reflects the company's weakening financial performance and uncertainties regarding the size and stability of Sovincom's rental flows after the expiry of its agreement with a hotel. The outlook may be revised to Stable if the company makes a new rental agreement, or if its financial performance improves. NRA plans to consider the outlook revision in January 2016 depending on the results of Sovincom's negotiations with new tenants.

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