OREANDA-NEWS. National Rating Agency has affirmed its 'A' credit rating on Pressa-1 Production Association Joint-Stock Company (Pressa-1). The outlook for the rating has been revised to Stable from Negative.

The company's first-time 'A' rating from NRA with a stable outlook was assigned on Oct. 1, 2014. The rating was affirmed with a negative outlook on Dec. 15, 2015.

The negative outlook reflected the fact that Pressa-1 had raised a FX loan at a time when exchange rate changes could severely affect its credit standing. NRA had set a threshold of RUR 79.5/US$ 1, above which the agency would consider a negative rating action on Pressa-1. When the exchange rate hit the above level, NRA considered a rating action.

The rating is supported by Pressa-1's stable cash flow from the sublease of property and its adequate equity of acceptable quality. The key driver of the rating revision to Stable was the company becoming part of PSN Group (rated 'A+/ Negative by NRA) and its supportive beneficial owners.

Currently, the company's business is concentrated by project (asset) and revenue source, while the macroeconomic risks may affect the stability and size of its sublease proceeds.

Pressa-1continues to have a sizeable debt burden and is exposed to high currency risks that may affect its financial result and liabilities.

These risks are all the more relevant, as the company's property development project is at a very early stage, and it is difficult to assess whether it will be a success. NRA is going to closely monitor the company's apartment project, and monitor Pressa-1's financials reflecting its financial condition.