print
30.08.2007
Bond issue by 135 Integrated House-Building Factory Subsidiary of Renome LLC assigned uaB+
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaB+ long-term credit rating to UAH 15.5m 2-year issue of registered housing bonds (A series) by the Kiev-based 135 Integrated House-Building Factory Subsidiary of Renome LLC (`Issuer` or `Company`). The company`s principal business is construction and production of reinforced concrete structures. At present, the company carries out a project for the construction of an apartment building in the village of Gorbanovka, Poltava Oblast. In the course of analysis, Credit-Rating considered the 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 uaB credit rating is characterized with 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 Issuer has experience in rendering services for the real estate construction: according to the results of 2006 and 1Q2007, the Issuer rendered services for the amount of UAH 23m and received net income of UAH 2m;
- The Issuer has at its disposal production facilities allowing for supplying the construction process on almost all stages.
Factors constraining a credit rating:
- The Issuer has no experience both in carrying out investment and construction projects as Customer, and in the redemption of housing bonds by giving premises to their owners;
- The housing bonds will be redeemed by giving apartments in the apartment building located in the village of Gorbanovka, Poltava Oblast, to the owners, the construction of which is at initial stage;
- The housing bond issue (UAH 15.5m) exceeded the Issuer`s equity (UAH 2.3m) by 7 times 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
