The credit rating of “Brusnika. Stroitelstvo i development” LLC (hereinafter, Brusnika or the Company) takes into account very strong assessments of business and geographic diversification, high level of corporate governance, high assessments of profitability and coverage of interest payments, and strong liquidity. The rating constraining factors include very high industry risk (residential construction), high leverage, and medium score for the size of the business. The Negative outlook has been maintained due to the risks of non-fulfillment of the sales plan if the period of unfavorable macroeconomic conditions drags on.
Founded in 2004, Brusnika is a developer company focusing on high-quality housing and integrated development of urban areas. The Company is headquartered in Yekaterinburg. The Company’s project portfolio is diversified among 14 regions. According to the Unified Resource of Developers, as of the beginning of November 2025, Brusnika ranked ninth in terms of its current construction portfolio. According to the Company, this indicator is above 2 mln sq. m of selling area.
KEY ASSESSMENT FACTORS
Industry risk is assessed as very high due to the pronounced cyclical nature of the industry, high amount of overdue payments, and substantial number of companies that have defaulted over the last five years. Therefore, industry risk is a significant factor that constrains the Company’s rating.
Performance for 9M 2025. In H1 2025, the Company’s sales fell by 22% y-o-y due to the unfavorable macroeconomic situation and the cancellation of the preferential mortgage programs. The improvement in market conditions in H2 2025, caused by a reduction in the key interest rate, led to a sharp recovery in demand: in the period from July to October, the Company’s sales surged by 70% y-o-y and by 56% compared to H1 2025. Brusnika regained its growth after a difficult period, and its sales began to grow at a faster pace. In the first ten months of 2025, the Company’s sales in physical terms increased by 7.6% y-o-y, while the market showed a decrease of 10%. In monetary terms, the growth was 16% against a 1% decline in the market. These data indicate that Brusnika is effectively benefiting on the market recovery.
Due to the significant investments for replenishing the land bank, Brusnika’s debt burden remained high in 2024–2025, which puts strong pressure on the Company’s financial metrics. At the same time, Brusnika’s plans to increase sales volumes, combined with the improvement in the market situation observed in H2 2025, allow ACRA to expect an improvement in debt metrics in the forecast period.
The Agency notes that coupon payments on the bond issue RU000A10C8F3 that saw a technical default was in November 2025, were made with a one-day delay. In ACRA’s opinion, this case was not related to liquidity problems, but was of a technical nature.
Very strong assessment of business. The Agency notes the high diversification of the Company’s project portfolio. According to the Agency’s estimations, the share of the largest project in projected revenues over the three-year horizon will not exceed 10%. The deadlines and conditions for the Company’s projects are stable and assessed by the Agency at a very high level. As of October 2025, the ratio of sold housing to newly constructed housing was high at 93% while the market average was 69%. Brusnika efficiently manages the deadlines and prime costs of construction by consolidating general contracting, technical supervision and design functions within the Company. This allows processes to be optimized and accelerates project implementation. Digitalization of business processes and investments in R&D boost productivity and lower costs. Brusnika has a developed sales system with diversified sales channels and an actively developing online shopping system. The Dependence on Materials and Subcontracting sub-factor is supported by the presence of production facilities for the manufacture of prefabricated structural elements, windows, reinforced frames. In addition, the Company is building a production cluster in New Moscow, which will produce reinforced concrete structures and other prefabricated items. The Company has a leading position in the Unified Resource of Developers in terms of consumer characteristics of projects.
The high level of corporate governance reflects the success of the strategy, which is expressed both in terms of growth in the Company’s operational indicators and its market share in regions of presence, as well as in the constantly improving quality characteristics of commissioned objects and increasing brand awareness. The financial transparency score is very high due to the publication of IFRS financial statements in the public domain, quarterly publication of operating results, and work with investors. The high score for the Management Structure sub-factor takes into account the presence of independent directors on the Company’s board of directors.
High leverage; high coverage of interest payments. When calculating the ratio of net debt to FFO before net interest payments, ACRA adjusts the total debt by the amount of debt raised under project financing in escrow accounts and fully secured with funds held in these accounts. In addition, ACRA includes the interest expense on the project debt in the prime costs.
The weighted average ratio of adjusted net debt to FFO before net interest payments for the period from 2023 to 2028 is estimated at 5.8x, while the ratio of total debt to capital will be 3.9x, which corresponds to a high leverage per the Agency’s methodology. ACRA expects the peak of the Company’s debt burden in 2025. In the Agency’s opinion, the subsequent decrease in this indicator will be achieved due to the above-mentioned growth in sales and the development of the accumulated land bank. When assessing the debt coverage indicator, ACRA takes into account interest payments on the project debt as part of the prime costs. The Agency estimates the weighted average ratio of FFO before net interest payments to net interest payments at 6.6x for the period from 2023 to 2028.
Medium assessment of the size of business and high profitability. The weighted average FFO before net interest payments and taxes for the period from 2023 to 2028 is RUB 32 bln. The weighted ratio of FFO before net interest payments and taxes to GDP over the same period is 1.4 bps, which, per the Agency's methodology, corresponds to the medium business size.
ACRA notes the cost control and project profitability, as well as the optimization of the Company’s overhead costs, which reflects the high operational efficiency of Brusnika. The Agency estimates the Company’s weighted average FFO before net interest payments and taxes margin for the period from 2023 to 2028 at 22%.
High level of liquidity and high score for cash flow. To assess the FCF margin of real estate developers, ACRA adjusts the FCF by the expenses financed by project finance. The improvement of the score for FCF is associated with the transition from the active expansion of the land bank to its development. The Agency expects FCF to be consistently positive over in 2026–2028. The key prerequisites for this are zero dividend payments and a supportive level of investment in the land bank, as outlined in the Company’s business plan. The strong liquidity assessment takes into account the Company’s positive FCF in the forecast period, as well as its diversified sources of internal and external financing and the amount of undrawn limits in banks.
KEY ASSUMPTIONS
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Adherence to construction and sales targets.
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ACRA’s estimates only include projects being constructed and planned in accordance with the Company’s current financial plan.
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The amount of dividend payments and investments in the land bank in line with the Company’s current financial plan.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Negative outlook assumes that the rating will highly likely be downgraded within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Weighted average ratio of adjusted net debt to FFO before net interest payments declining sustainably below 2.0x;
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Weighted average ratio of adjusted net debt to FFO before net interest sustainably below 3.5x and the weighted average ratio of FFO before net interest payments and taxes to GDP exceeding 1.5 bps.
A negative rating action may be prompted by:
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Weighted average ratio of FFO before net interest payments to interest payments falling below 4.0x;
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Residential real estate prices decreasing by more than 15% in the primary markets of the Company’s regions of presence in 2026–2028;
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Regulatory changes capable of having a material adverse effect on the Company’s performance.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): a-.
Adjustments: none.
ISSUE RATINGS
“Brusnika. Stroitelstvo i development” LLC (ISIN RU000A107UU5), maturity date: March 28, 2027, issue volume: RUB 7.5 bln — A-(RU).
“Brusnika. Stroitelstvo i development” LLC (ISIN RU000A10B313), maturity date: March 3, 2028, issue volume: RUB 3 bln — A-(RU).
“Brusnika. Stroitelstvo i development” LLC (ISIN RU000A10C8F3), maturity date: July 23, 2028, issue volume: RUB 7.5 bln — A-(RU).
Rationale. The issues represent senior unsecured debt of the Company. Due to the absence of either structural or contractual subordination of the issues, ACRA regards them as equal to other existing and future unsecured and unsubordinated debt obligations of the Company in terms of priority. As per ACRA’s methodology, the detail approach is applicable to determine the credit rating, according to which the recovery rate on the issues belongs to category I, therefore the credit ratings of the issues are equivalent to that of the Company, i.e. A-(RU).
REGULATORY DISCLOSURE
The credit ratings of “Brusnika. Stroitelstvo i development” LLC and the bond issues of “Brusnika. Stroitelstvo i development” LLC have been assigned based on the following methodologies: the Methodology for Assigning Credit Ratings to Non-Financial Corporations under the National Scale for the Russian Federation to calculate the SCA and determine the credit rating and the credit rating outlook of “Brusnika. Stroitelstvo i development” LLC under the national scale for the Russian Federation; the Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation to determine the credit rating of the bond issues under the national scale for the Russian Federation; the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities to ensure consistent and uniform application of ACRA’s methodologies, rating scales, models, and key rating assumptions.
The credit rating of “Brusnika. Stroitelstvo i development” LLC was published by ACRA for the first time on March 3, 2020. The credit ratings of the bond issues under the national scale for the Russian Federation were published for the first time: ISIN RU000A107UU5 — March 7, 2024, ISIN RU000A10B313 — March 20, 2025, ISIN RU000A10C8F3 — August 11, 2025.
The credit rating of “Brusnika. Stroitelstvo i development” LLC and its outlook, as well as the credit ratings of the bond issues of “Brusnika. Stroitelstvo i development” LLC, are expected to be revised within one year.
The credit ratings are assigned based on data provided by “Brusnika. Stroitelstvo i development” LLC, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of “Brusnika. Stroitelstvo i development” LLC as of December 31, 2024.
The credit ratings are solicited and “Brusnika. Stroitelstvo i development” LLC participated in their assignment.
In assigning the credit ratings, 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 “Brusnika. Stroitelstvo i development” LLC during the year preceding the rating action.
No conflicts of interest were discovered in the course of credit rating assignment.
