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Moody's changes outlook on JSC OPIN's B1/A2.ru ratings to negative

October 17, 2008 | Cbonds

London, 16 October 2008 -- Moody's Investors Service has today changed the
rating outlook to negative from stable for the B1 corporate family rating of
JSC OPIN ("OPIN"), which is based in Moscow, Russia. At the same time,
Moody's Interfax Rating Agency, which is majority owned by Moody's, changed
the outlook to negative from stable for OPIN's A2.ru national scale rating
(NSR).

The change in outlook was prompted by Moody's increased uncertainties
regarding the impact of the turmoil in the financial markets on the
evolution of the general economic environment in Russia, coupled with OPIN's
exposure to the highly cyclical real estate development business.
OPIN's ratings were assigned initially with the expectation that the
positive business environment in Russia would continue. Moody's has also
noted that the ability and willingness of local banks in Russia to provide
local companies with sufficient funds to finance growth and day to day
business have in the recent past been reduced. While this is not expected to
have an impact on OPIN's liquidity position, it could contribute to falling
demand from home buyers as investor confidence weakens.

The B1 corporate family rating for OPIN is based on: (i) the company's
status as one of the top ten Russian companies specialising in residential
development and, in particular, its strong market niche in gated communities
in the Moscow regions; (ii) vertical integration through its purchase of
Viceroy Homes, a Canadian manufacturer of partially prefabricated homes,
which has reduced its construction and design risks and build costs; (iii)
its success in maintaining leverage at low levels, thanks in part to
generous shareholder support; and (iv) the continuing strong real estate
market conditions in Moscow for both residential and commercial property.
However, Moody's notes that the ratings remain constrained by: (i) the risks
associated with a strongly growing company, operating in a cyclical
industry; (ii) OPIN's relatively narrow geographic diversification; (iii)
the execution risk involved in turning Viceroy Homes into a profitable
venture for the group; and (iv) the uncertainties inherent in the current
operating environment in the Russian real estate industry, such as
unpredictable shifts in licensing, and an evolving legal framework.

Moody's last rating action was taken on July 3, 2008 when the B1 corporate
family rating and A2.ru national scale rating were first assigned to OPIN.

OPIN is a publicly quoted property development and investment company with a
focus on elite and business class residential gated communities and Class A
offices, largely in Moscow city centre and its regions. For the year ending
31 December 2007, the company recorded total revenues of
USD165 million and total assets of USD3.5 billion.

Company: INGRAD (PAO)

Full company namePAO INGRAD
Country of riskRussia
Country of registrationRussia
IndustryConstruction and development

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