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21.09.2007
Upcoming bond issue by Zhytlo Kyianam 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 UAH46.1m 2 Ѕ-year issue of registered housing bonds (E-I series) by Kiev-based Zhytlo Kyianam LLC (`Issuer` or `company`). The company`s principal activity is investment and construction. Today the company constructs Pivdenna Brama residential complex in the city of Kiev. In the course of analysis Credit-Rating considered 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The bond issue is to be redeemed by residential and non-residential premises and by parking lots in Pivdenna Brama residential complex of 69.5K sq.m. residential floor area; its construction readiness made up 50.7% as of June 30, 2007 (March 2007 saw completing two residential buildings of 23.6K sq.m.)
- The Issuer is engaged with organizing and financing the residential and commercial real estate in the city of Kiev, where real estate prices and demand have been growing over the past few years.
Factors maintaining the credit rating
- The Issuer does not have experience in redemption of housing bonds.
- Issuer`s liabilities on three issues of hosing bonds (including the upcoming one) rose to UAH278.6m
- Issuer`s equity is negative amounting to UAH(-)8.9m as of March 31, 2007.
- Instability in legislation and tax environment controlling both the construction industry and project financing.
Information on all credit ratings assigned in accordance with the Ukrainian national scale may be found in 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
