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03.09.2007
Upcoming bond issue by Matinka Firm 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 UAH 59.1m 2-year upcoming issue of registered housing bonds (A-E series) by the Kiev-based Matinka Firm LLC (Issuer or Company). The company's principal business is construction and installation works. Today, the company carries out a project for the construction of an apartment building in the city of Kiev. In the course of analysis, Credit-Rating considered the 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.
Factors maintaining a credit rating:
- The Issuer has experience in reconstruction works and capital repairs of non-residential premises, namely since the year 2002 the Issuer has reconstructed eight objects of 20.2K square meterrs total area;
- The Issuer is involved in financing the construction of residential and non-residential estate in the city of Kiev, where the prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer has no experience in carrying out investment and construction projects as Customer, and in redemption of housing bonds by giving premises to their owners;
- The bonds will be redeemed by giving apartments in the apartment building located at 26, Lvovskaya Str., Kiev, to the owners, construction of which is at initial stage;
- The upcoming housing bond issue (UAH 59.1m) exceeded the Issuer's assets (UAH 3.1m) by 19 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
