Fitch ratings has affirmed OJSC LSR Group’s (LSR) Long-term foreign currency Issuer Default Rating (IDR) at ’B’ with a Stable Outlook and the senior unsecured rating of the existing bond issues of RUR5.0bn, RUR1.5bn, RUR2.0bn and RUR2.0bn at ’B’.
The agency has also assigned the new bond issue of RUR2.0bn a senior unsecured rating of ’B’.
The affirmations reflect LSR’s acceptable liquidity position and its strong positions in the Russian development and building materials markets. Fitch assesses positively the optimisation of the debt portfolio term structure, but considers LSR’s investment plans as ambitious.
LSR has reinforced its market positions following the financial crisis. It is among the top Russian real estate developers, with a focus on the St. Petersburg and Leningrad region. The development and construction segment contributed 67% of revenues and almost 80% of EBITDA in 2010. LSR’s real estate portfolio is significant with a market value of US$3.7bn as of 31 December 2010.
LSR is finalising its vertical integration in north-western Russia. The recently installed cement plant is already commissioned.