Russian developer Mirax denies liquidity problems

By Gleb Bryanski

MOSCOW, April 22 (Reuters) - Russian real estate developer Mirax denied any liquidity problems after a report by the Fitch credit rating agency raised concerns about banks' exposure to the red hot local property market.

The Fitch rating agency earlier this week had reiterated its "rating watch negative" for Mirax, citing heightened concerns over its liquidity position.

Mirax Deputy CEO Alexander Paperno said in a statement: "As a result of a legal restructuring, all Mirax Group assets were consolidated in the new holding company Mirax Group Holding BV. "The decision by Fitch to place our ratings in the negative watch list is linked to this fact," Paperno added, noting Mirax Group liabilities were fully backed by the new holding company.

"There will be no worsening for our obligations' holders, once certain procedures are completed, it will become clear to everyone, including Fitch," Paperno said.

Fitch said Mirax's short-term debt had grown by $417 million to $454 million over the past 12 months, representing 54 percent of the company's total debt, while the company had not increased back-up liquidity reserves accordingly.

Mirax, which is involved in high profile projects such as the building of a giant tower in Moscow, is not publicly traded and has put its initial public offering plans on hold.

The company's bonds <RU0A0JNN80=MM>, maturing in September 2009, yield 11.27 percent, slightly up from 11.20 at the start of the year.