Fitch Ratings says Russian property development companies are likely to be amongst the worst-hit by a deteriorating financing environment. This is because of a large share of short-term debt in their liquidity profiles, their often significant operational cash outflows, limited cash-on-balance sheet and a virtual absence of meaningful committed un-drawn facility headroom.
“At a time when the Russian government has had to intervene to support domestic financial institutions and with increasing question marks over the ability and appetite of all but the largest Russian domestic banks to maintain current funding levels to the real estate sector, liquidity risks associated with Russian property developers have never been higher,” says Julian Crush, Senior Director in Fitch’s Corporates team. The agency notes yesterday’s positive news that state-owned bank VneshEconomBank (VEB) is to provide up to USD50bn to help refinance Russian corporate debt, but regards this as short-term......

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Title: Analysis Of Liquidity Development In Russia After 1998 Financial Crisis
Approximate Word Count: 748
Approximate Pages: 3 (250 words per double-spaced page)

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