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25.05.2007
Upcoming bond issue by Firma Dekor assigned uaCCC credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC long-term credit rating to the upcoming issue of registered housing bonds (A-T series) by Sevastopol-based Firma Dekor LLC (`Issuer` or `company`) for the amount of UAH 109.9m with the 2-year original maturity. The main company`s activity is investment and construction. Today the company constructs a cottage-type pension in the city of Sevastopol. In the course of analysis Credit-Rating used Issuer`s financial statements for 2003-2006 as well as other inside information furnished by the company.
The uaCCC issue rating reflects a default possibility, which may be faced in the Ukrainian financial market environment. The timely and full payments on debt liabilities are substantially dependant upon favourable business, financial and economic conditions.
Factors maintaining the credit rating
- The planned bond issue is to be redeemed by premises in cottage-type pension based in Omega bay (Sevastopol), on which construction all licensing documents have been obtained.
- The Issuer is involved in organizing and financing the construction of recreational real estate in the city of Sevastopol, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in construction, neither in bonds` redemption.
- The project to be financed by the funds raised from the bonds` placement is currently on the preparatory stage.
- Issuer`s asset balance amounted to UAH 768.1K as of Dec. 31, 2006, with the issue size amounting to UAH 109.92m
- Volatility in legislation and taxation on operations connected with construction and with attraction of funding.
Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found in the REUTERS, BLOOMBERG and FTN MONITOR information systems.
For further information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
