OREANDA-NEWS. National Rating Agency has affirmed its national sale ‘AA-’ credit rating on Lira LLC with a stable outlook. The rating is based on the support rating of RS2, reflecting the probability of support from O1 Properties Limited. Lira’s stand-alone national scale credit rating is ‘A’. The company’s first-time ‘AA-’credit rating from NRA, falling into the “Holding and Financial Companies” section of NRA’s rating list, was assigned on Dec. 30, 2014.

The rating is supported by assets, indirectly controlled by Lira (the company is controlled by O1 Properties Limited, whose market value by far exceeds their book value, allowing the company’s debt burden to be regarded as reasonable. The main factors determining the current rating level are the uniqueness of the asset controlled by the companies and Lira’s predictable and stable operating performance and generated cash flows. NRA also notes the parent group’s ability to provide a strong extraordinary support to the company.

Offsetting these strengths are the worsening macroeconomic situation, which affects, among other things, the commercial property sector, falling business center prices, and curtailing rental flows, in face value terms (without adjustment for the exchange rate), associated with declining occupancy rates. All this slows the company’s long-term growth and may impair its access to funding. Currently, the company’s key risk is the high level of debt, which is 100% FX-denominated. That said, Lira is in a better position relative to peers due to the dominance of foreigners in its tenant base. We also note the way Lira hedges its currency risk, namely, the maintenance of FX rates in its rental agreements with all business center tenants.

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