Moody’s gives B1 to O1 Properties notes

Moody's Investors Service said it assigned a provisional B1 rating to the proposed debut notes to be issued by O1 Properties Finance plc, incorporated under the laws of Cyprus and guaranteed by the parent company, O1 Properties Group.

The outlook is stable.

Moody’s said the provisional B1 rating, in line with O1's B1 corporate family rating, reflects its: (a) large high quality office property portfolio; (b) leading position in the most lucrative and stable segment in Russia of class A properties in Moscow's central business district; (c) diversified top-tier tenant base; (d) balanced lease terms and maturities; and (e) conservative development strategy with current development risk limited to below 5% of its total portfolio.

The company's strong business profile partly mitigates the risks related to its high geographic concentration in Moscow, the agency explained. The capital city, while the largest and the most stable market in Russia, remains vulnerable to the country's economic cycles and its less developed regulatory, political and legal framework.

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