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07.09.2007
Upcoming bond issue by FIN.N 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 27m one year issue of registered housing bonds (A series) by the Dnepropetrovsk-based FIN.N LLC (`Issuer` or `Company`). The company`s principal business is investment and construction. At present, the company carries out a project for the construction of an apartment building in the city of Sevastopol. In the course of analysis, Credit-Rating considered Issuer`s financial statements for 2005-2006 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. A plus + and a minus - signs indicate intermediary categories (grades) compared to the standard categories (grades).
Factors maintaining a credit rating:
- The upcoming housing bond issue will be redeemed by giving appropriate premises in the apartment building located in section 6, Omega-2A district, Sevastopol, to the owners. As of July 01, 2007, UAH 2.65m or almost 10% of the construction budget has been invested in the project construction;
- The Issuer is involved in financing and construction of residential real estate in the city of Sevastopol, where prices and demand have been growing over the past few years.
Factors constraining a credit rating:
- The Issuer has no experience both in carrying out investment and construction projects and in redemption of housing bonds by giving premises to their owners;
- The upcoming bond issue (UAH 27m) exceeded the Issuer`s assets (UAH 13.5m) by two times as of July 01, 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 informatio, please contact:
Information and Analitic Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
