Credit rating rationale. The issue represents senior unsecured debt of “Brusnika. Stroitelstvo i development” LLC (hereinafter, the Company). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu with other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. According to ACRA’s methodology, the reimbursement rate for the Issuer’s unsecured debt qualifies for Category I. Therefore, the bond issue is rated BBB+(RU), i.e. on par with the Company.
The Company’s credit rating is based on its strong business profile, strong geographic diversification, very high profitability, low leverage, very high coverage, and strong cash flow. Medium market position and company size assessments as well as substantial dependence on the largest lender (Sberbank) are holding back the Company’s rating.
Key issue properties
| Issuer | “Brusnika. Stroitelstvo i development” LLC |
| Issuer’s credit rating | BBB+(RU), outlook Stable |
| Actual issuer | “Brusnika. Stroitelstvo i development” LLC |
| Type of security | Uncertified exchange-traded interest-bearing non-convertible bonds subject to a centralized title registration, 001P-01 series |
| Issue volume | RUB 4 bln |
| ISIN / RegS | RU000A101HU5 / 4B02-01-00492-R-001P |
| Placement start date | March 12, 2020 |
| Maturity date | March 9, 2023 |
Regulatory disclosure
The credit rating has been assigned to series 001P-01 (RU000A101HU5) bond issued by “Brusnika. Stroitelstvo i development” LLC under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of the Russian Federation, and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.
The credit rating has been assigned to series 001P-01 (RU000A101HU5) bond issued by “Brusnika. Stroitelstvo i development” LLC for the first time. The credit rating is expected to be revised within one year following the publication date of this press release.
The assigned credit rating is based on the data provided by “Brusnika. Stroitelstvo i development” LLC, information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and “Brusnika. Stroitelstvo i development” LLC participated in its assignment.
No material discrepancies between the provided data and the data officially disclosed by “Brusnika. Stroitelstvo i development” LLC in its financial statements have been discovered.
ACRA provided no additional services to “Brusnika. Stroitelstvo i development” LLC. No conflicts of interest were discovered in the course of credit rating assignment.
