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25.09.2007
Stolytsya Corporation assigned uaA+ credit rating
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced the assignment of uaA+ (uaA plus) long-term credit rating to Kiev-based Stolytsya Corporation (`Issuer` or `Corporation`). The agency has also assigned uaA+ (uaA plus) long-term credit rating to the Corporation`s UAH50m 3-year issue of registered coupon bonds (A series). The Issuer is a nonprofit organization, which incorporates companies engaged in construction. Today the Corporation implements or schedules to implement construction projects in the city of Kiev and its suburbs, and in other regions of Ukraine, namely Mykolayiv, Kremenchuk, Vinnitsa, Poltava, Tcherkassy, Kherson. In the course of analysis Credit-Rating considered information furnished by Issuer`s representatives.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is 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 Issuer is a nonprofit organization participated by companies integrated vertically into a vigorous structure and engaged in rendering a wide range of construction and financial services. The Issuer is among 3 biggest construction companies in the city of Kiev by both size of incomes and projects implemented.
- The upcoming issue is underwritten by Corporation`s participants Trust Kievgorstroy-1 CJSC, Kievgorstroy-1 CJSC and Holding Kievgorstroy-1 LLC, which consolidated undistributed 2006 profit of UAH98.4m almost 2x exceeds the issue size with their undistributed profit of UAH177.7m as of June 30, 2007 over 3x exceeding the issue size.
- The Issuer`s management has a significant experience in construction including operation within the Corporation.
Factors constraining the credit rating
- Risks imposed by size of projects, in fact the Corporation plans to implement more than 15 investment and construction projects of 1.5+ million sq.m. in 7 upcoming years, which almost 3x exceed the floor space of the buildings constructed hitherto.
- 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
