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09.10.2007
Credit-Rating assigns Stroycompleks`s upcoming issue uaBB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH28.3m 1-year issue of registered housing bonds (A-D series) by Evpatoriya-based Stroykompleks OJSC (`Issuer` or `company`) a long-term credit rating of uaBB+ (uaBB plus). The company`s primary activity is investment and construction. Today the company constructs residential buildings in the city of Evpatoriya, the Autonomous Republic of Crimea. 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 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer has experience in investment and construction projects; in fact the Issuer has built 32 residential, commercial and recreational buildings with 19 of them being residential of 62K sq.m.
- The planned issue is to be redeemed by premises in 8-sectional 108-apartment complex with installed office and commercial facilities at the crossing of Moskovskaya str. and Lenina av. in Evpatoriya, with the readiness of the 1st stage making up 98 per cent, and 25-30 per cent of the 2nd stage as of July-end.
- The Issuer operates all production facilities necessary for supplying the construction on all stages.
- The Issuer is engaged in residential construction in recreational area of Crimea, 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 bonds redemption.
- The issue size of UAH28.3m exceeds 43 per cent Issuer`s asset balance of UAH19.8m and 14x Issuer`s equity of UAH1.9m as of June 30, 2007.
- Issuer`s detrimental performance in 2002-2006 and 1H2007, specifically Issuer`s uncovered loss made amounted to UAH(-)13.3m
- 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
