The “Rating under review: developing” status has been assigned to the credit rating of Level Group LLC (hereinafter, Level Group or the Company) because the Company’s ultimate beneficiary has been detained. Since the investigation concerns the other segment of his business, the Agency is currently unable to assess the risks associated with a potential negative effect on Level Group’s creditworthiness.
The current credit rating of the Company — A-(RU) — is based on the very high assessments of profitability and coverage, very low leverage, and the strong assessment of its business profile. The rating is constrained by the very high industry risk (residential construction) and the medium assessment of the Company’s market position.
Level Group is a residential real estate developer. The Company implements development projects of premium, business and comfort classes in Moscow and the Moscow Region. As of the beginning of March 2025, the volume of the current construction portfolio was around 788,000 sq. m. The Company is among the ten largest developers in Moscow in terms of this indicator. The Company’s land bank is about 2.9 mln sq. m of net sales area (NSA).
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The “Rating under review: developing” status indicates a variety of trends: the rating may stay unchanged, be upgraded or downgraded.
Removal of the “Rating under review: developing” status and affirmation of the credit rating may be prompted by:
- The situation with the ultimate beneficiary being resolved without any effect on the Company’s credit quality.
Removal of the “Rating under review: developing” status and upgrading the credit rating may be prompted by:
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The situation with the ultimate beneficiary being resolved without any effect on the Company’s credit quality;
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Stronger market positions of the Company coupled with a growth in the current construction portfolio.
Removal of the “Rating under review: developing” status and downgrading the credit rating may be prompted by:
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The situation with the ultimate beneficiary being resolved to the detriment of the Company’s credit quality;
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Weighted average FFO before net interest and taxes declining below RUB 30 bln and weighted average ratio of FFO before net interest to net interest falling below 8.0x;
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Prices in Moscow’s residential real estate market declining by over 15% in 2025–2026;
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Regulatory changes that may impair the Company’s operations.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): a-.
Adjustments: none.
ISSUE RATINGS
There are no outstanding issues.
REGULATORY DISCLOSURE
The credit rating has been assigned to Level Group LLC under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating of Level Group LLC was published by ACRA for the first time on January 18, 2023. The credit rating and its outlook are expected to be revised by December 20, 2025.
The credit rating was assigned based on data provided by Level Group LLC, information from publicly available sources, and ACRA’s own databases. The credit rating is solicited and Level Group LLC participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to Level Group LLC. No conflicts of interest were discovered in the course of credit rating assignment.
