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06.08.2007
Bond issue by Akvapark LLC assigned uaB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaB long-term credit rating bearing Positive outlook to UAH83.1m 2-year issue of registered housing bonds (D-G series) by Kiev-based Akvapark LLC (Issuer or company) . The company's primary activity is investment and construction. Today the company implements construction projects on construction of residential buildings, hotels, office buildings, parkings and an aquapark in the city of Kiev. In the course of analysis Credit-Rating considered Issuer's financial statements for 2001-2006 and 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 obligor`s capacity and willingness to meet in full its commitments on the given debt liability.
Positive outlook indicates that there is a possibility to upgrade the rating in the course of the year, on the condition that positive tendencies are maintained and that current risks are reduced.
Factors maintaining the credit rating
- The Issuer has an experience of a customer and investor in investment and construction projects, in fact April 2006 saw a 10.5K sq.m. building constructed in #1, Shumskogo str. in Kiev.
- The planned bond issue is to be redeemed by proprietary rights for residential and non-residential premises in 1A and 1Б, Shumskogo str., which construction readiness is 63.5% and 54.2% respectively.
- The Issuer is involved in organizing and financing the construction of residential and commercial premises in the city of Kiev, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in bonds` redemption.
- Growth in Issuer`s liabilities on 3 issues of housing bonds (including the upcoming one) to UAH170m, which 16x exceeds Issuer`s equity of UAH10.5m as of March 31, 2007.
- Volatility in legislation and taxation on operations associated 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 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
