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17.08.2007
Bond issue by Podillya-Bud Construction Company assigned uaB+
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaB+ long-term credit rating to UAH35.4m year and a half issue of registered housing bonds (A-Z series, A1-A2 series) by the Vinnitsa-based Podillya-Bud Construction Private Company (`Issuer` or `Company`). The company`s principal activity is investment and construction. At present, the company carries out a project for the construction of an apartment building in the city of Vinnitsa. In the course of analysis Credit-Rating considered 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 uaB credit rating is
characterized with the LOW creditworthiness as compared to other Ukrainian obligors or
debt liabilities. This level of creditworthiness is extremely susceptible to 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:
- As customer and general contractors, the Issuer has experience in residential construction of 8 400 s.m. total area;
- The Issuer is involved in residential construction in the city of Zhitomir, where prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer has no experience in redemption of housing bonds by giving premises to their owners;
- The bonds will be redeemed by giving residential and business premises in the apartment building located at Tolstogo-Militseyskaya Str., Vinnitsa to their owners. The construction of the apartment building is at initial stage;
- Volume of the housing bond issue (UAH 35.4m) exceeded the Issuer`s assets (UAH 1.9m) by 19 times as of March 31, 2007;
- As of March 31, 2007, the Issuer`s equity had a negative value of UAH (-) 896 600 due to unprofitable activities over the past three years;
- 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
