Fitch rates PIK BB-

Fitch Ratings said it assigned OJSC PIK Group a long-term issuer default rating of BB- and a short-term issuer default rating of B.

The outlook is stable.

The agency said the ratings reflect PIK Group's leading positions in the buoyant Moscow and Moscow region housing construction markets; PIK Group's $8.8 billion project portfolio, making it one of the largest among Russian construction companies; its integrated low-cost production model, underpinned by the use of pre-fabricated panels in the construction process; and the company's aim to adhere to best international corporate governance standards.

The ratings are constrained by limited geographic and project diversification and the considerable portion of the company's projects that are currently at an early stage of development, which increases the risks of future potential delays or stoppages of the projects and leaves PIK Group exposed to potential medium-term downturns in demand and pricing, Fitch added.

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