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25.07.2007
Rating to bond issue by MERKURIY-PROGRESS LLC 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 the issue of registered housing bonds (A-G series) for the amount of UAH21.28m due March 31, 2008 by Kharkiv-based MERKURIY-PROGRESS LLC (Issuer or company). The company's primary activity is investment and construction. Today the Issuer constructs a multi-storied building in the city of Kharkiv. To revise the rating the agency considered Issuer's financial statements for 1Q2007 as well as other inside information 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 obligors capacity and willingness to meet in full its commitments on the given debt liability.
In the course of the ratings upgrade procedure Credit-Rating took into account increase to UAH12.6m in the volume of investments into a construction project in 13, 1-oy Konnoy Armii str., the city of Kharkiv, which has led to 55% construction readiness of the building. Currently the works on erecting the ferro-concrete frame in the 16 th storey are being underway.
Information on all the credit ratings assigned in accordance with the Ukrainian National Scale may be found in 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
