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31.07.2007
Upcoming bond issue by Kyivrekonstruktsiya Financial Company assigned uaCCC+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaCCC+ (uaCCC plus) long-term credit rating to the upcoming issue of registered discount bonds (A-O series) by Kiev-based Kyivrekonstruktsiya Financial Company LLC (Issuer or company). The issue size is UAH675m with the original maturity of A-G series of 9 years, and H-O series of 10 years. The company's primary activity is construction of factories for their further leasing. In the course of analysis Credit-Rating considered Issuer's financial statements for 2006 and 1Q2007 as well as other inside information furnished by the company.
A credit rating of uaCCC is a speculative-grade rating, indicating a debt liability with a DEFAULT POSSIBILITY, such that the obligor's payment of principal and interest are substantially dependent upon favourable conditions in the business, financial or economic conditions in the Ukrainian financial market environment. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.
Factors maintaining the credit rating:
- The Issuer is controlled by Kyivrekonstruktsiya OJSC, which is one of the leading companies in the city of Kiev in renovation and reconstruction niche providing the Issuer with access to financial and production resources of Kyivrekonstruktsiya OJSC.
Factors constraining the credit rating:
- The Issuer was registered at 2005 year-end and has not been involved in any economic activity;
- Issuer's risk are common with those of Kyivrekonstruktsiya OJSC;
- The issue size of UAH675m exceeds significantly Issuer's asset balance of UAH3m as of March 31, 2007.
Information on all the credit ratings assigned in accordance with the Ukrainian National Scale may be 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
