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14.08.2007
Bond issue by R-Kvadrat Ukraine Delta LLC assigned uaBBB
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today
announced the assignment of uaBBB long-term credit rating to UAH 34.5m
one year issue of registered housing bonds (A-D series) by R-Kvadrat Ukraine Delta
LLC (`Issuer` or `Company`). The company`s principal business is the purchase, rent,
management and lease of land plots in Ukraine and abroad. At present, the company carries
out a project for the construction of a trade and service centre in the village of
Rozshova, Khmelnitsky Oblast. 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 uaBBB is an investment grade rating, indicating an
ADEQUATE CAPACITY to pay both interest and principal on the given debt liability in the
Ukrainian financial market environment. This rating indicates a level of creditworthiness
that is more susceptible to adverse changes in commercial, financial and economic
conditions than debt obligations with higher investment grade ratings.
Factors maintaining a credit rating:
- The Issuer is a part of R-Kvadrat group of developer companies (Austria), which started its business in 2004 and operates in six countries of Europe. The group has 13 construction projects with 255K sq.m. total area;
- Redemption of the planned bond issue will be conducted by giving premises located in the Podillya Trade and Service Centre (the city of Khmelnitsky) to investors. As of June 15, 2007, the center was 95% completed.
Factors constraining a credit rating:
- The Issuer has no experience in the redemption of housing bonds by giving premises to their owners;
- The Issuer was unprofitable over 2006 and 1Q2007: as of March 31, 2007, uncovered losses amounted to UAH () 1.6m;
- Instability of legislation and tax environment controlling both the construction industry and project financing.
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
