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28.09.2007
Credit-Rating rates GRANIT-Plus`s bonds at uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH150.6m 3-year issue of registered housing bonds (A-C series) by Kiev-based GRANIT-Plus LLC (`Issuer` or `company`) a long-term uaBBB credit rating. The company`s principal activity is investment and construction. Today the company constructs a multistoried residential building with installed social facilities and an underground parking in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The Issuer is associated via its participants with SKF Granit LLC, which has
experience in implementation of investment and construction projects as a general
contractor and
co-investor; in fact it has built 6 residential buildings of 69.2K sq.m. and currently operates production facilities and structural subdivisions allowing for supply the construction process on almost all stages. - The Issuer is engaged with organizing and financing the construction of residential and commercial premises in the city of Kiev, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in housing bonds redemption.
- The issue size of UAH150.6m exceeds significantly Issuer`s assets of UAH2.4m as of March 31, 2007.
- Issuer`s equity of UAH(-)265.9K has remained negative as of March 31, 2007 being restrained by Issuer`s detrimental performance in 2004-2006 and 1Q2007.
- 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
