OREANDA-NEWS. RusRating has lowered the credit rating of OOO “Golden Funds” from "BB-" to “B+” on the international scale and from "BBB-" to “BB+” on the national scale, in both cases with a negative outlook.

According to the agency, the rating cut reflects the increased cost of the Company’s real estate development project in Perm (construction of a retail and entertainment complex) in response to a falling rouble.

The negative outlook reflects a substantial anticipated increase in its debt burden following a bond issue and a lack of information on its planned use of the funds.

The rating itself is based on the substantial market value of the Company’s assets and solid business ties to a major Russian financial group.

Constraining factors include assets and liabilities highly concentrated by individual counterparty, as well as low profitability.

About the Company

OOO “Golden Funds” is a private-sector limited liability Russian company that acts as a financial intermediary and satisfies Federal Financial Markets Service requirements for classification as a “qualified investor”. The Company has solid business ties to a major Russian financial group and its ultimate beneficiary owner is Yevgeni Andreyevich Zhuk.

Most external obligations are accounts payable to the Company’s main client (a Perm-based bank that ranks among Russia’s top three hundred by assets) or to firms in the above-mentioned financial group. Financial investments account for the bulk of assets, most notably shares in closed mutual investment funds that hold real estate in the city of Perm; accounts receivable from the same group of companies also make up a significant portion of the balance sheet. The Company’s own funds are negligible and profitability is weak. Liquidity is sufficient. Risk sensitivity is elevated.