On March 22, ACRA assigned City Management Company a BB+ credit rating and also gave a stable outlook for its future operating activities and profitability.
As a reminder, PAO City is the only management company for Moscow-City , as stipulated in the General Agreement signed with the city authorities. It is responsible for the maintenance and development of the engineering and transport infrastructure throughout the business center. Its responsibilities also include landscaping and landscaping, major repairs, improving traffic management within the Moscow International Business Center, and managing parking lots. Furthermore, City Management Company manages city-owned buildings and land, including the Moscow-City Museum with its observation deck, located in the Empire Tower.
Its long-term management contract for Moscow's largest business center played a significant role in determining its credit rating. This ensures the company's consistent operations and high profitability. The following factors negatively impacted its credit rating:
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the relatively small size of the company compared to the size of the corporate sector;
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obtaining an average rating for the market position occupied;
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receiving a poor rating for corporate governance.
City Management Company's credit rating was also influenced by its skyscraper construction project. Its implementation will be entrusted to its subsidiary, City Development, and the total area of the project is expected to be 174,600 square meters. Construction is planned to be financed by bank project financing.
