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21.08.2007
Bond issue by Arkh-Bud-Invest LLC assigned uaCC credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today
announced the assignment of uaCC long-term credit rating to UAH45m
5-year issue of registered discount bonds (A series) by the
Sumy-based Arkh-Bud-Invest LLC (`Issuer` or `Company`). The company has not carried
out any financial and economic activities, but the planned businesses are engineering,
development of projects for energy and water supply of the construction objects and
rendering services for geological exploration and technical control. 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.
An obligor or a debt liability with uaCC credit rating is characterised
with the VERY HIGH DEFAULT POSSIBILITY.
Factors maintaining a credit rating:
- The Issuer plans to enter the real estate market of the city of Sumy, where prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer was incorporated in October 2006 and has not conducted any financial and economic activities yet;
- The discount bond issue (UAH45m) exceeded the Issuer`s balance sheet total (UAH9.8m) by five times as of March 31, 2007;
- The Issuer depends on the financial liabilities which had a 97% share in the structure of liabilities as of March 31, 2007, and it has no other sources of revenues at the same time. The equity had negative value of UAH (-) 520 000 as of December 31, 2006 and of UAH (-) 1.5m 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
