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29.05.2007
Upcoming bond issue by GEFEST assigned uaBB- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today
announced the assignment of the uaBB- (uaBB minus) long-term credit rating to the
upcoming issue of registered housing bonds (A series) by Odessa-based GEFEST Private
Technical Venture (`Issuer` or `company`) for the amount of UAH50.5m with the 3-year
original maturity. The main company`s activity is investment and construction. Today the
company as a customer constructs a trade and residential complex and a gymnasium in the
city of Odessa. In the course of analysis Credit-Rating used Issuer`s financial
statements for
2004-2006 as well as other inside information furnished by the company.
Issues rated uaBB are the least affected by the risk of non-payment of the principal and interest within the speculative grade. The obligor, however, may be impaired to timely and in full meet its commitments on the obligation in the Ukrainian financial market environment in the event of adverse changes in business, financial and economic conditions. However, the possibility of nonpayment is low in the near future. The `+` and `-` modifiers denote rating`s relative status within major categories.
Factors maintaining the credit rating
- The issue is to be redeemed by residential premises in the trade and residential complex based 1, Grecheskaya str., city of Odessa, which has been invested UAH12.5m amounting to 13% of overall volume of investments as of Apr. 1, 2007.
- The Issuer is incorporated with the GEFEST group, which companies as general contractors constructed 55.6K sq.m. of premises with 5.4K sq.m. of them being constructed by the companies as customers.
- The Issuer is involved in construction business of the city of Odessa, 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 bonds` redemption.
- The planned issue size 7.4x exceeds Issuer`s assets as of Dec. 31, 2006.
- 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
