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22.06.2007
Credit rating to bond issue by National construction company upgraded to uaB
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today upgraded to uaB from uaCCC the long-term credit rating assigned to issues of registered housing bonds by Kiev-based National construction company CJSC (`Issuer` or `company`). The issues` size is UAH101.28m of A-C series, UAH76.07m of D-F series with A series due Jan. 15, 2009, B series due March 31, 2009, C series due June 30, 2009, D-F series due Nov. 30, 2010. The company`s principal activity is investment and construction. Today the company constructs multi-apartment residential buildings in city of Kiev. To revise the rating the agency considered Issuer`s financial statement for 1Q2007 as well as other inside furnished by the company.
A credit rating of uaB is a speculative grade rating, indicating a debt liability that has a HIGHER DEFAULT POSSIBILITY on the payment of principal and interest than a uaBB rating. This rating indicates that adverse changes in the business, financial or economic conditions in the Ukrainian financial market environment may negatively affect the obligor`s capacity and willingness to meet in full its commitments on the given debt liability.
In course of the rating`s revision procedure the agency took into account company`s experience in construction projects, specifically the Issuer as an investor and general contractor has built 4 sections of a residential building #6 in Svyatoshyn district of Kiev (between Koltsova blvd, Ulyanova and Kartvelishvili streets) of 25K sq.m. total floor area. The current year is to see 3 other section of the building #6 (50-55% construction readiness) and 6 sections of the building #28 (80-85% construction readiness) to be built in the same district.
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
