April 20, 2015. International rating agency Standard&Poor’s confirmed O1 Properties rating at “B+” with negative outlook.
The agency analysts pointed out that good quality of O1 Properties’ income-producing property portfolio contributes to the view of company’s business risks at “fair” level. Long term leases averaging 3,9 years support the company recurring cash flow wile large multinational companies form 70% of the company’s net operating income.
Moreover Standard&Poor’s analysts said that rent reductions and asset portfolio revaluations for O1 Properties are modest compared with the scale of ruble reduction. The company gives only limited and short-term rent reductions which shows good quality of its assets and strong competitive position. The agency does not expect father meaningful revisions of rent agreements because vacancy rates for prime office space in the historical central business districts of Moscow remain low.
Dmitry Mints, Chairman of the Management Board of O1 Properties: «Confirmation of international rating in the current situation of market turbulence is the important event indicating stability of the company’s strategy and its strength against the negative market influences. O1 Properties will continue investing in development of its assets, improving management quality and level of available services for tenants».View PDF