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03.08.2007
Rating to bond issue by K&FD upgraded to uaBB
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today upgraded to uaBB from uaB the long-term credit rating to UAH25m 9-year issue of registered discount bonds (A series) by Dnepropetrovsk-based K&FD LLC ('Issuer' or 'company'). The company's primary activity is investment and construction. Today the company implements 3 construction projects in the city of Dnepropetrovsk. To revise the rating Credit-Rating considered Issuer's financial statements for 2Q and 1H2007 as well as other inside information furnished by the company.
A credit rating of uaBB is a speculative grade rating, indicating a debt liability that is the LEAST AFFECTED BY THE RISK OF NONPAYMENT of the principal and interest among speculative grade ratings. This rating indicates that the obligor may not be able to meet in full its commitments on the given debt liability on a timely basis in the event of adverse changes in the business, financial or economic conditions in the Ukrainian financial market environment. However, the possibility of nonpayment in the near future is considered to be low.
In the course of the ratings revision procedure the agency took into account the fact that the companies of the group the Issuer is incorporated with has disclosed information on their experience in construction, in fact on 5 buildings of 26.8K sq.m. unveiled. The Issuer itself has constructed a 9.9K sq.m. building, which is currently being set in operation, with the construction readiness of another building of 9.2K sq.m. being 95% as of Jun. 1, 2007.
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
