NRA Lowers Maxima Plaza’s Credit Rating To ‘BBB+’; Outlook Stable
OREANDA-NEWS. National Rating Agency has lowered its national scale credit rating to Maxima Plaza LLC to ‘BBB+’, based on the support rating of ‘RS4’, and has taken it off its Watchlist with stable implications. The company was assigned NRA’s first-time credit rating of ‘A’ on Sep. 4, 2014. The rating was placed on the Watchlist with negative implications on Dec. 18, 2015
The rating is supported by Maxima Plaza’s access to long-term funds, well-conceived business plan for its investment property reconstruction and renovation, and its considerable experience in the commercial property development and management. NRA also notes the company’s comfortable relationship with its creditor bank, enabling it to borrower on terms that are more favorable than those available to peers.
Weaknesses include the company’s significantly increased leverage at a time when its investment project is at an early stage, and its modest rental flow, relative to its borrowings, which is insufficient for covering Maxima Plaza’s expenses related to the servicing of bank loans raised to fund the acquisition and reconstruction of commercial properties.
NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.
While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.