The rating agency RAEX (Expert RA) assigned a creditworthiness rating of ruBBB+ to the RISE Capital’s company VIS Development. The rating outlook is stable. The company is preparing for its first bond issue under the public-private partnership project.
VIS Development is a private partner of the PPP project implemented in the Yamal-Nenets Autonomous District. The investment stage of the project is now complete: six children’s educational institutions have been built in several cities across the region. The construction was performed with both the company’s own and raised funds, as a result of which it was possible to create more than 1,500 new school places in a short time and solve the issue of waiting lists for kindergartens and schools. The public partner of the project is the Government of the Yamal-Nenets Autonomous District. The facilities are to be purchased within 5 years after commissioning.
When calculating the rating, analysts took into account the degree of project readiness and emphasised the high quality of its strategic support. According to the agency’s final release: “All the objectives of the project have been successfully achieved, and the company’s cash flows have been largely determined until the end of Q1 2019, as they will be for municipal debt payments that are fully included in the budgets of the respective levels”.
In September this year the first bond issue of RUB 1.7 billion is planned for the project. By February 2018, VIS Development plans to place its second bond issue of RUB 2.3 billion. The rating of ruBBB + confirms the reliability of the company as an issuer of securities.