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27.09.2007
Credit-Rating rates upcoming bond issue by DON-SLOV at uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned upcoming UAH35m 3-year issue of registered housing bonds (A-O series) by Donetsk-based DON-SLOV LLC (`Issuer` or `company`) a long-term uaB credit rating. The company`s primary activity is investment and construction. Today the company constructs a residential building in the city of Donetsk. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 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 the credit rating
- The upcoming issue is to be redeemed by premises in the residential building, being invested 5 per cent of the project value as of August-beginning 2007, and which is situated at the crossing of Shkolniy blvd. and Mira av. in the city of Donetsk.
- The general contractor of the project is ALTKOM Invest-stroy LLC, which has built a 25K sq.m. residential complex and is currently constructing another two buildings of 42K sq.m., and which ongoing construction readiness exceeds 65 per cent.
- The Issuer is engaged in residential construction in the city of Donetsk where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer has never been involved in implementation of investment and construction projects, neither in bonds redemption.
- The issue size is equal to the size of Issuer`s assets as of June 30, 2007, which 93 per cent made up of securities.
- Issuer`s detrimental performance in 2002, 2004-2006 and in 1H2007 with the uncovered loss amounting to UAH(-)0.28m as of June 30, 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
