print
28.09.2007
Credit-Rating rates Kyivinvestbud and its issue at uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Kiev-based HK Kyivinvestbud LLC (`Issuer` or `company`) and its UAH148.6m 4 1/2-year issue of registered housing bonds a long-term uaBB credit rating. The company`s principal activity is investment and construction. Today the company constructs a 4-section residential complex in the city of Boryspil, Kiev Oblast. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- Starting from 2004 the Issuer as a general contractor has built a market in the city of Khmelnitsky and 3 residential buildings in the cities of Kiev and Nikopol of 14.7K sq.m. total floor space and implemented construction works for UAH43.4m.
- Issuer`s lucrative performance in 2004-2006 and 1H2007 with the undistributed profit amounting to UAH321.7K as of June 30, 2007.
Factors constraining the credit rating
- Volatile Issuer`s performance during the entire period of its operation.
- It is expected that Issuer`s liabilities will significantly rise being bolstered by issuance of A-E series housing bonds for UAH148.6m, which 14.4x exceeds Issuer`s equity.
- 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
