OREANDA-NEWS. RusRating has changes the outlook on OOO Artsistemstroi’s credit rating from “negative” to “stable” following the renewal of official approval for construction of the Arkhangelskoye residential complex. The rating is unchanged at "BB+" on the national scale and "B+" on the international scale.

The rating is based on close business ties to the Peresvet group and the associated financial support.

Constraining factors include increased project costs resulting from an extended time frame; a high debt burden which the Company is not yet able to service independently; high uncertainty risks associated with a development project in its early stages; and uncertain conditions in the residential real estate market.

About the Company

OOO Artsistemstroi is a limited liability company and the real estate developer behind the 98 900 m2 business-class Arkhangelskoye residential project located in the south-west of Arkhangelskoye town (Krasnogorsk district, Moscow region). The Company is owned by Bowron Holdings Ltd. and has close business ties to the Peresvet group and its owners, Oleg Pronin and Vladimir Melnikov.

At this time the Company is unable to service its debt due to the cessation of work on the Arkhangelskoye project. Operating profits are generated by its role as a financial intermediary. Cash flow gaps are possible in the medium term and overall risk sensitivity is high. Assets consist mainly of financial investments in debt instruments plus accounts receivable and inventory.