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Бизнес

Experts highly appreciated the development strategy of A101 Group of Companies

Two rating agencies, Expert RA and ACRA, with different assessment methods, noted the high level of creditworthiness of A101 Group of Companies. According to the Expert RA agency, the credit rating of the A101 Group of Companies was increased over the year from ruA- to the ruA level, the forecast is stable. The ACRA rating agency also assigned the group a credit rating of A(RU), the outlook is also stable.

ACRA experts assessed the group's creditworthiness for the first time. The rating is driven by a high assessment of the operational risk profile, low debt burden, very high debt service ratio, very high profitability and strong liquidity.

GC «A101» is the leader in the housing construction market of New Moscow: its share was 31% based on the results of nine months of 2023. The agency considers the housing market of the Moscow region, including New Moscow, as one of the most capacious, stable and marginal. As ACRA analysts note, the very high profitability of the A101 Group of Companies is ensured, among other things, by economies of scale within the framework of integrated development projects of the territory, high product quality and cost control at all stages of project implementation.

Last year, the Expert RA agency assigned the group a rating of ruA– with a stable outlook, and this year raised it to ruA due to an increase in the volume of ongoing construction, a reduction in corporate debt, as well as an expected improvement in financial performance as construction readiness increases ongoing projects, delivery of construction projects and disclosure of escrow accounts.

The rate of replenishment of the group's escrow accounts exceeds the sample for loans — the total volume of funds in escrow accounts significantly exceeds the total sample for project loans.

The Expert RA agency assesses the market and competitive positions of A101 Group of Companies at a high level. This year, the group’s current housing construction volume (excluding non-residential and infrastructure facilities, according to the agency’s methodology) amounted to 1.3 million square meters. m, which corresponds to the maximum estimate of the position factor in sales markets. The volume of the company's land bank is high by market standards and, at the current pace of construction, creates a resource base for a period significantly exceeding three years, which is also assessed at the maximum level according to the resource base criterion.

“Large-scale projects for the integrated development of territories are always long-term and therefore are considered more difficult to implement and build a financial model. At the same time, it was our strategy for developing our own land bank based on the principle of building cities that turned out to be the most effective from the point of view of consumer demand — the sales plans of the A101 Group of Companies have already been exceeded. We received a high credit rating from two agencies during a difficult period for the real estate market. According to “House. RF”, as of October 2023, 15% of developers did not fulfill their annual sales plans. At the same time, the uncertainty in the mortgage market changes the attitude of experts to the creditworthiness of the majority of market players, while we feel confident,” commented Dmitry Gorelov, financial director of A101 Group.

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