OREANDA-NEWS. National Rating Agency has affirmed its 'A+' credit rating on Mosstroysnab OJSC with a negative outlook. NRA's first-time credit rating of 'А+' was assigned to the company (the relevance of the 'A+' credit rating on PSN Group extended to Mosstroysnab OJSC) on Mar. 18, 2014 and affirmed with a stable outlook on Sep. 24, 2014. In accordance with NRA's rating methodology, Mosstroysnab's rating is tied to that of PSN Group, as Mosstroysnab is a special purpose vehicle (SPV), owned by the Group and implementing one of the Group's development management projects.

The rating is underpinned by Mosstroysnab's steady progress in carrying out its residential complex construction project in Moscow, we well as parent support. PSN Group has a sizable business and demonstrated a positive revenue flow in 2014. It also has a comfortable debt maturity profile. The Group has close business ties with Promsvyazbank PJSC (NRA's credit rating of 'AA+'), one of Russia's largest financial institutions. NRA also notes the reduction of the currency gap in the Group's borrowing portfolio, as a considerable part of its FX liabilities has been substituted with ruble debt.

Rating weaknesses include the adverse macroeconomic situation, affecting the real estate construction and development sector, as well as the Group's exposure to the liquidity and currency risks and the negative translation adjustments to the Group's property value. These factors prevent NRA from positively assessing the Group's prospects based on 2015 results and going forward (in 2016). NRA will consider either a negative rating action justifying its current outlook or the outlook revision after it receives information about the Group's financial and operational performance in 2015.