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05.06.2007
Bond issue by Company on Organizing the Residential Construction 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 issue of registered housing bonds (A series) by Company on Organizing the Residential Construction LLC (`Issuer`or company`) based in the borough of Prolisky, Kiev Oblast. The 2 Ѕ -year issue`s size is UAH20.74m. The main company`s activity is investment and constriction. Today the company constructs a multi-apartment residential building in the borough of Prolisky, Kiev Oblast. In the course of analysis Credit-Rating used Issuer`s financial statements for 2005-2006 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 Issuer has at its disposal all permitting documentation for construction a residential building in 15, Morozova str., the borough of Prolisky, which is to be financed by the funds raised from the bonds` placement.
- The Issuer is involved in financing the residential construction in Boryspil district of Kiev Oblast, where real estate prices and demand correspond with those of Kiev.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds` redemption.
- The planned bond issue is to be redeemed by premises in the residential building which currently is on the initial stage of construction.
- The planned issue size of UAH20.74m 81x exceeds Issuer`s assets of UAH256.3K 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
