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06.09.2007
Upcoming bond Issue by K & FD assigned uaBB credit rating
Credit-Rating, a nationally-recognized credit rating agency in Ukraine, has today announced the assignment of uaBB long-term credit rating to UAH45m 10-year upcoming issue of registered discount bonds (B series) by the Dnepropetrovsk-based K & FD LLC (`Issuer or `Company`). The main company`s business is construction and designing. Today the company carries out three construction projects in the city of Dnepropetrovsk. In the course of analysis, Credit-Rating used Issuer`s financial statements for 2003-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining a credit rating:
- The Issuer is a part of group of companies, which is involved in the construction sphere and has already carried out six investment and construction projects of a 36700 m2 total area (one of them has a 9900 m2 total area and has been constructed by the Issuer and is going to be put into operation). Another building of 9200 m2 total area was 95% completed as of June 01, 2007;
- The Issue was profitable over 2004-2006 and 1H2007;
- The Issuer operates in the real estate market of Dnepropetrovsk, where the prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- Total liabilities on bond issues including the last one amount to UAH 70m; as of June 30, 2007 the Issuer`s equity amounted to UAH 286 800.0, and the total net sales amounted to UAH 5.4m over the past three years;
- Low financial independence indicators over the company`s lifetime, namely as of June 30, 2007 the independence indicator was 0.004;
- 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
