Moody’s rates O1 Properties bonds B1

Moody's Investors Service said it assigned a B1 rating to the proposed $335 million domestic bonds due in 2021 to be issued by O1 Properties Finance plc and guaranteed by O1 Properties Ltd.

The outlook is stable.

O1 Properties Finance will issue the bonds for the sole purpose of financing loans to O1 and its key operating subsidiaries, Moody’s said.

The proceeds will be used for repayment of part of the company's existing debt, the agency said.

The bonds will be denominated in U.S. dollars and settled in Russian rubles at the exchange rate determined by the Central Bank of Russia for the relevant date, Moody’s said.

The ratings assigned to the domestic bonds are in line with O1's B1 corporate family rating, which reflects the large, high quality office property portfolio, leading position in the most lucrative and stable segment in Russia of class A properties in Moscow's central business district and diversified top-tier tenant base, the agency said.

The company's strong business profile partly mitigates the risks related to its high geographic concentration in Moscow, Moody’s said.

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