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31.08.2007
Upcoming bond issue by BnC assigned uaССС credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaCCC long-term credit rating to the upcoming issue of registered discount bonds (B series) by the Kiev-based BnC LLC (`Issuer` or `Company`) for the amount of UAH 50m with the 5-year original maturity. The main company`s business is consulting on commercial and management issues. Today the company plans to operate on the real estate market of the city of Kiev and of Kiev Oblast. In the course of analysis, Credit-Rating used Issuer`s financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors maintaining the credit rating:
- The Issuer is incorporated with the Business Congress Corporation, which companies are leaders in investment and financial consulting business.
Factors constraining the credit rating:
- Issuer`s information non-transparency and vague development strategy;
- Issuer`s activity within the Business Congress Corporation imposes risks of cash redistribution between the corporation`s companies without taking into account Issuer`s interests. That makes the Issuer vulnerable to risks, which may incur under corporation`s financial and economic performance;
- Liabilities on two discount bond issues including the upcoming one (UAH 100m) exceeded the Issuer`s balance sheet total (UAH 10.1m) by 10 times as of April 01, 2007, and the equity (UAH 5.3m) by 19 times;
- Decrease in the company`s net sales over the past three years (to UAH 0.5m from UAH 8.9m) and its detrimental performance according to 2005-2006 and 1Q2007;
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
