On May 8, 2026, the analytical credit rating agency downgraded the credit rating of Setl Group to A-(RU), changing the outlook to stable, and its bonds to A-(RU). This is stated in the agency's message.
The decrease in the credit rating of Setl Group is due to a deterioration in estimates for the size, profitability, debt burden and coverage of interest payments. This deterioration was the result of a decrease in the weighted average FFO indicator, which was caused by an increase in project financing costs due to an increase in its volume, as well as a decrease in sales in monetary terms. The latter, in turn, is dictated both by the reduction of the supply window due to the tightening of the process of obtaining permits in St. Petersburg, and by the curtailment of mortgage programs with state support at a high cost of market mortgages.
The company's credit rating is based on a very strong market position and business, strong liquidity, high profitability and low debt burden. The rating is constrained by weak cash flow and average coverage of interest payments, as well as very high industry risk (housing construction).
Setl Group LLC is the largest residential real estate developer in the North—Western region. At the beginning of May 2026, the volume of the current construction portfolio amounted to about 1.5 million square meters. According to this indicator, the Company is one of the ten largest developers in the country and occupies a leading position in St. Petersburg.
