S&P rates Kvartsroy notes B-

Standard & Poor's said it assigned a B- long-term corporate credit rating and ruBBB- Russia national scale rating to Breboro Holdings Co. and its fully owned subsidiary LLC MC Kvartstroy.

The outlook is stable.

S&P also said it assigned a B- long-term and ruBBB- issue ratings to the proposed RUB 1.5 billion senior unsecured notes to be issued by Kvartstroy.

The recovery rating on these proposed notes is 4, reflecting 30% to 50% expected default recovery.

The ratings reflect Breboro's vulnerable business risk profile based primarily on the generally high cyclicality and capital intensity of the real estate development business in Russia, the agency said.

The ratings also consider the risks associated with the relatively small size of the company, S&P said, and a high concentration of income derived from projects in one area, Nizhny Novgorod.

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