print
04.10.2007
Credit-Rating rates KHMELNITSKSTROY INVEST`s bonds at uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH30m 4-year issue of registered discount bonds (A-F series) by Khmelnitskyi-based KHMELNITSKSTROYINVEST LLC (`Issuer` or `company`) a long-term credit rating of uaB. Today the company implements 5 projects on construction of commercial and residential premises in the city of Khmelnitskyi. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2006 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.
Factors maintaining the credit rating
- The Issuer as a customer and general contractor constructs 5 buildings, with two of them ready 40 and 95 per cent, situated respectively in 94-1/A and 94/1-Б Mira Av., Khmelnitskyi.
- The Issuer operates in real estate market in the city of Kmelnitskyi, constructing commercial facilities, the prices for which have been growing over the past few years.
Factors constraining the credit rating
- Issuer`s meeting its commitments on the obligation is contingent upon successful accomplishing the construction of a trade and residential complex in 115, Podolska str., the city of Khmelnitskyi, which construction is currently on the initial stage.
- The issue size of UAH30m exceeds 5.4 per cent Issuer`s assets of UAH28.5m and 19x Issuer`s equity of UAH1.5m as of Apr.1, 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
