OREANDA-NEWS. National Rating Agency has affirmed its 'A' credit rating on Pressa-1 Production Association JSC with a Negative outlook. The company was first assigned NRA's 'A' credit rating with a Stable outlook on Oct. 1, 2014.

The rating is supported by the company's stable cash flows from the sublease of property, and adequate equity capital of acceptable quality. Pressa-1 is part of consolidated PSN Group and can count on its ultimate beneficiaries for support.

The company's business is currently concentrated by project and revenue source, while the macroeconomic risks may weigh on the size and stability of its cash flows from the sublease of property. The rating outlook revision to Negative reflects substantial changes in the company's business, which have pushed up its debt level, as well as currency risk, affecting the company's financial result and liabilities at a time when its development project is in an early stage of implementation and its prospects are difficult to evaluate.

NRA expects considerable changes in the company's financial profile, if Pressa-1 raises a FX debt, while its revenue is ruble-denominated, and if the US$ appreciates significantly relative to the ruble. NRA will consider a negative rating action, if the dollar-to-ruble exchange rate increases by 20% against its level on Sep. 30, 2015 (that is, to 79.5:1). NRA will also consider a rating action after it receives the company's full-year 2015 financial statement. In addition, NRA will monitor the implementation of the apartment complex construction project.