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The Moscow Times Moscow Guide – Winter 2008

Since the middle of autumn one of the most important topics of discussion, could only be … no, not the financial crisis… New Year! The winter issue of The Moscow Times Moscow Guide is entirely devoted to New Years celebrations. Seven great ideas for celebrating the “Night of Nights” will help readers finalise their plans and choose how and where to party, give fresh ideas and lots of practical advice.

And don’t forget – problems will come by themselves, but happiness and luck need an invitation. That why the more cheerful and light-hearted your celebration of the coming holiday is, the happier and more successful 2009 will be for you.

The Crisis: Signs of a Kremlin Fearful Of Unrest
Sociologist Yevgeny Gontmakher has painted a disturbing picture of what might emerge from the financial crisis, forecasting continued unemployment, huge protests and spreading violence.

Market Matters: Huge Grain Harvest No Boon for Farmers
This year Russia is enjoying the biggest grain harvest it has ever seen -- and farmers couldn't be more worried.



Tuesday, January 06, 2009 Updated at 31 December 2008 22:36 Moscow Time.

The Moscow Times » Issue 4000 » Business

Fitch Report Dampens PIK's Gains

01 October 2008PIK rose as much as 19 percent Tuesday in London after posting strong results, but it lost most of the gains after Fitch said Russian property developers were likely to be among the worst hit by a deteriorating financing environment.

The ratings agency said Russian developers were dangerously exposed to the crisis because of a large share of short-term debt in their liquidity profiles, significant operational cash outflows as well as limited cash-on-balance sheet.

"Liquidity risks associated with Russian property developers have never been higher," said Julian Crush, senior director in Fitch's corporates team.

PIK said its net debt had risen by $603 million since Dec. 31, 2007 to stand at $1.32 billion, while total debt was up by $175 million to $1.59 billion. Of this, the biggest chunk was short-term debt at 1.33 billion.

The company's shares were up 3.4 percent Tuesday evening.

PIK slumped 40 percent on Monday in London as investors fled risky investments. Its Moscow-traded shares fell by 22.1 percent Tuesday in illiquid trading.

The builder reported a 34 percent rise in first-half 2008 net profits to $93 million and said it was upbeat on prospects in the second half as it had cash to grow and refinance debt.

"The cash generative nature of our business sets us apart from many developers and will enable us to continue with project execution," Kirill Pisarev, chief executive and co-owner, said in a statement.

Reuters, MT