The credit rating of Malltech Holding ICLLC (hereinafter, the MH or the Company) is based on the medium size of business and its medium profitability, low leverage, strong cash flow, and medium liquidity. The credit rating is limited by the high industry risk, financial transparency score, and the low level of interest payment coverage. The operational profile is determined by the strong scores for the Company’s market position, the Business factor, and the geography of operations.
The Company is the owner and operator of six shopping malls: Planeta Shopping and Entertainment Centers in Krasnoyarsk (Planetamoll-Krasnoyarsk LLC), Ufa (Planetamoll-Ufa LLC), Novokuznetsk (Novostroy LLC), and Perm (LA TERRA LLC), as well as Leto Shopping and Entertainment Complex (SPB-Leto LLC) in Saint Petersburg and Aura Shopping and Entertainment Center in Novosibirsk (SibStroyInvest LLC). The gross building area (GBA) of the shopping centers amounts to 833,100 sq. m, while the gross leasable area (GLA) is 446,900 sq. m.
KEY ASSESSMENT FACTORS
Strong assessments of market position and business. According to the Agency’s methodology, the commercial real estate segment has high industry risk. MH owns several properties with a very well diversified portfolio of tenants. The Company’s market position is generally assessed by the Agency as strong. More than half of the regions of presence have a credit quality of no lower than A, according to ACRA’s estimates. The individual GLA of the Company’s shopping centers ranges from 62,500 to 82,200 sq. m. The share of the largest property (Planeta Shopping and Entertainment Center in Krasnoyarsk) in MH’s revenues for 2025 and H1 2026 amounted to around 30%. The average duration of lease contracts in all properties is over three years. The average occupancy rate of floor space in 2025 and 6M 2026 was 95%. Throughout 2026 there has been temporary growth in the level of vacancies in some of the Company’s properties (ranging from 6% to 11%) as part of the scheduled optimization of the tenant portfolio. The Company’s policy is aimed at retaining the current tenants and attracting new ones, including Termoland and DDX Fitness.
Medium size of business and profitability. In 2025, the FFO before net interest payments and taxes was RUB 6.6 bln, having fallen by 26% from RUB 8.9 bln in 2024. This result was also affected by one-time expenditures included in the operating cash flow. ACRA assumes that this indicator will recover to RUB 9.2 bln by the end of this year. The weighted average FFO before net interest payments and taxes from 2024 to 2028 will be RUB 8.5 bln, or 0.378 bps of GDP, which corresponds to a medium size of business according to ACRA’s methodology. The FFO margin before net interest payments and taxes was 47% in 2025, having declined from 67% a year earlier, while the weighted average for 2024 to 2028 is 59%.
Low leverage and coverage. The Company’s debt is mainly floating-rate loans provided by Sberbank and Bank VTB (PJSC). The ratio of total debt to FFO before net interest payments was 6.1x in 2025 (vs. 4.2x in 2024), while the ratio of total debt to market value of real estate (LTV) was 51%. The ratio of total debt to FFO before net interest payments may return to 4.3x if the current size of debt remains unchanged in 2026.
The ratio of FFO before net interest payments to interest payments declined from 1.2x in 2024 to 0.8x in 2025 due to lower FFO before net interest payments and a higher level of interest payments on the back of the Bank of Russia’s high key rate. Taking into account the recovery of FFO before net interest payments included in ACRA’s forecast and the gradual decline of the key rate, the Company’s coverage may improve to 1.4–1.7x in the forecast period.
Medium liquidity and strong cash flow. In March 2027, one of the loans is expected to be paid off. ACRA assumes that it will be refinanced under the preliminary conditions offered by the creditor. Another three loans are to be redeemed in 2028, which make up more than 75% of MH’s current debt. In view of the letters that the Agency has received from the creditors who are interested in refinancing the loans, the weighted average current liquidity ratio is estimated to be high. The qualitative assessment of liquidity takes into account exclusively bank financing from external sources.
The free cash flow (FCF) margin was 13% in 2024. The negative value of the FCF margin in 2025 is explained by the influence of one-off expenditures. This indicator may recover in the forecast period. The share of capital expenditures in revenues was 3% in 2025. According to the Company, the size of capital expenditures will remain at a similar level in the forecast period. MH does not rule out the possibility of paying dividends starting from 2026.
Very low level of corporate governance. The Company is successfully carrying out a strategy that strengthens its leadership and advantages in the market, however, this has not been set out in a single document. The Company launched the process of redomiciliation to the Russian Federation in 2022, which was completed at the end of December 2025. MH has a board of directors. The Company manages its key risks. Foreign currency and interest risks were hedged using options in 2023–2025, however, such agreements are currently absent. MH compiles consolidated IFRS reporting, which is audited by B1.
KEY ASSUMPTIONS
-
Successful refinancing of loans in 2027–2028 according to the conditions disclosed to ACRA;
-
No raising of additional financing in 2026–2028;
-
Capital expenditures in 2026–2028 as per the data provided by the Company;
-
No major dividend payments in the forecast period;
-
The Bank of Russia’s average annual key rate at 14.5% in 2026, 12.8% in 2027, and 10% in 2028.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
- Weighted average ratio of FFO before net interest payments to interest payments exceeding 2.5x.
A negative rating action may be prompted by:
-
Weighted average ratio of total debt to FFO before net interest payments exceeding 8.0x;
-
Weighted average ratio of FFO before net interest payments to interest payments falling below 1.0x;
-
Negative value of the weighted average FCF margin;
-
Significant deterioration of the liquidity profile.
RATING COMPONENTS
Standalone creditworthiness assessment (SCA): bbb+.
REGULATORY DISCLOSURE
|
Applicable credit rating methodologies, including those used to assess the rated entity’s standalone creditworthiness and rating-sensitive external factors |
1. 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 Malltech Holding ICLLC under the national scale for the Russian Federation.
|
|
Fact of the initial rating assignment |
A credit rating has been assigned to Malltech Holding ICLLC under the national scale for the Russian Federation for the first time. |
|
Next revision of the credit rating and the credit rating outlook |
Within one calendar year from the latest rating action date. |
|
Material sources of information |
The rated entity, publicly available sources, and ACRA’s own databases. |
|
Standards and date of the latest financial statements used as a source of information in the rating action |
IFRS as of 31 December, 2025 |
|
Rating solicitation |
Solicited |
|
Limitations with respect to the credit rating or the credit rating outlook, including those related to the quality of information on the rated object available to the credit rating agency |
ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the rating methodologies. No conflicts of interest were discovered in the course of the credit rating process. |
|
Ancillary services, if any, provided to the rated entity during the year preceding the rating action, and the period of these services |
None |
