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20.08.2007
Upcoming bond issue by Strim LLC assigned uaB+ credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaB+ long-term credit rating to upcoming UAH 33.5m 2 year issue of registered housing bonds (A series) by the Donetsk-based Strim LLC (`Issuer` or `Company`). The company`s principal business is investment and construction. At present, the company carries out a project for the construction of a business centre in the city of Donetsk. 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:
- The bonds will be redeemed by giving appropriate business premises in the Akula Business Centre located at 138-140 Atrema Str., Donetsk to the investors. As of June 21, 2007, the business centre was 65% completed;
- The Issuer is involved in financing and construction of commercial real estate in the city of Donetsk, where prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer has no experience both in carrying out investment and construction projects and in redemption of housing bonds by giving premises to their owners;
- The property rights for the construction in progress at 138-140, Artema Str., Donetsk are mortgaged according to the received credit line;
- The planned registered housing bond issue exceeded the Issuer`s assets by 1.6 times as of March 31, 2007;
- The Issuer`s equity had a negative value of UAH (-) 983K as of December 31, 2006 and of UAH (-) 1 506 000 as of March 31, 2007;
- 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
