Expert RA has upgraded the credit rating of PIK-SHb and PIK-Corporation to ruA+. The outlook for both ratings is stable.
Analysts note PIK’s strong competitive and market positions, a large and diversified project portfolio, as well as a high level of security with a land bank to maintain the current scale of activities.
The company continued to increase the number of projects implemented with the use of project financing, which contributed to an increase in the debt portfolio to RUB 232.1 billion as of the end of 2020. At the same time, in a significant number of projects, investments were ahead of sales and cash accumulated on escrow accounts. The quality of PIK’s IT systems increases the predictability of cash flows and the schedule for disclosing escrow accounts, which, according to experts, has a positive effect on the overall reliability and transparency of the company’s activities for lenders and equity holders.
Additional support for the rating was provided by:
- a significant decrease in the level of debt burden against the backdrop of outstanding financial results for 2020 (sales volume 341 billion rubles, revenue 380 billion rubles).
- active expansion of PIK activities in the areas accompanying the residential real estate business
- principles of maximum information transparency
- high level of organization of risk management and corporate governance
- strong business reputation and operational discipline of the company for the timely completion of projects