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16.08.2007
Upcoming bond issue by Kharkov Scientific and Technological Complex assigned uaBBB- credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of uaBBB- long-term credit rating to UAH 13.5m year and a half issue of registered housing bonds (A series) by the Kharkov-based Kharkov Scientific and Technological Complex PJSC (`Issuer` or `Company`). The company`s principal business is investment and construction and design works for oil and gas industry. At present, the company carries out a project for the construction of a residential complex in the city of Kharkov. In the course of analysis, Credit-Rating considered the Issuer`s financial statements for 2002-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus + and a minus - signs indicate intermediary categories (grades) compared to the standard categories (grades).
Factors maintaining a credit rating:
- The housing bonds will be redeemed by giving the appropriate residential premises in the section #11 of the residential complex located at 1A, Gagarina Avenue, Kharkov by the company. The first ten sections have already been built;
- The Issuer was profitable and had high ratios of financial independency and liquidity over the past four years;
- The Issuer is involved in an investment and construction project in the city of Kharkov, where the real estate prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer has no experience in the redemption of bonds by giving premises to their owners;
- As of March 31, 2007, the planned housing bond issue exceeded the Issuer`s balance sheet total almost by 1.5 and the equity by 3 times;
- 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
