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07.09.2007
Upcoming certificate issue by MASTER FINANCE LLC 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 upcoming UAH 70m 4-year issue of FREO (Fund for Real Estate Operations) certificates (A, B series) by the Dnepropetrovsk-based MASTER FINANCE LLC (Issuer or Company). One of the companys principal businesses is creation of the FREO for financing the construction of the Pioneer Residential Complex in the city of Mariupol, Donetsk Oblast. In the course of analysis, Credit-Rating considered Issuer`s financial statements for 2006 and 1H2007 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
- MASTER FINANCE LLC cooperates with more than ten enterprises of Dnepropetrovsk, united under the MASTER trade mark and involved in trade and investment spheres, namely in construction of apartment buildings in the city of Dnepropetrovsk (33000m2 total area), trade centres in eight regional centres (27000m2 total area) and hotels ;
- Customer of the Pioneer Residential Complex construction is Kviten LLC, which has experience in construction of three real estate units of a 5000m 2 total area as a Client;
- The Issuer is involved in construction of residential and commercial real estate in the city of Mariupol, where prices and demand have been growing over the past few years.
Factors constraining a credit rating
- The Issuer has no experience in real estate operations by attracting the cash from individuals and legal entities as a FREO manager;
- The construction projects implementation is at the stage of permits approval;
- The FREO certificates as an investment instrument have not gain expected popularity in Ukraine, which may lead to Issuer`s failure in meeting its commitments on the obligations;
- 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
