June 10, 2019. The international rating agency Standard & Poor’s has affirmed its credit rating for investment company O1 Properties at “CCC” and upgraded the outlook to positive.
In March 2019, O1 Properties completed negotiations with major creditors, including Eurobond holders, and obtained agreements not to demand early repayment due to the change of the main shareholder. Since the beginning of 2019, O1 Properties has refinanced loans totaling USD 800 million: currency of the loans has been changed to euros and rubles, and maturity dates have been extended to reduce liquidity and currency risk. O1 Properties is showing positive results from operations, helped by consistently strong demand for high-quality office space in Moscow.
As shown by the positive rating outlook, Standard & Poor’s believes that O1 Properties can advance from “CCC” level if the company successfully concludes negotiations with all creditors on the removal of provisions in loan agreements regarding change of owner. Absence of liquidity risks, including those related to Eurobond payments, will also play an important role.View PDF