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10.10.2007
Credit-Rating rates Stolytsya`s upcoming bond issue at uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH100m 10-year issue of registered discount bonds (F-O series) by Kiev-based Stolytsya LLC (`Issuer` or `company`) a long-term credit rating of uaB . The company`s principal activity is investment and construction. Today the company implements 5 investment and construction projects in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 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 operates in the construction market; specifically it has built 2 residential complexes of 32.3K sq.m.
- The Issuer operates in the real estate market of Kiev, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- Issuer`s information intransparency.
- Issuer`s equity has remained negative in the past 3 years amounting to UAH(-)17.7m as of March 31, 2007.
- The overall size of all company`s issues, including the upcoming one, accounts for UAH204.4m which 1.3x exceeds Issuer`s asset balance of UAH152.4m as of March 31, 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
