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11.10.2007
Credit-Rating rates Zhytloindbud`s upcoming issue at uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH81.2m 2-year issue of registered housing bonds (AA-DE series) by Kiev Oblast-based Zhytloindbud LLC (`Issuer` or `company`) a long-term credit rating of uaCCC. The company`s principal activity is investment and construction. Today the company constructs a residential complex with installed social facilities in the borough of Petropavlivska Borschahivka, Kiev Oblast. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors maintaining the credit rating
- The Issuer as a customer constructs a residential complex with installed social facilities in the borough of Petropavlivska Borschahivka, Kiev Oblast, where real estate prices and demand have been growing in line with those in the city of Kiev.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds redemption.
- The planned issue is to be redeemed by premises in the residential complex the proprietary rights for which are deposited under the bank loan; the construction is currently on the initial stage.
- The planned issue size of UAH81.2m exceeds significantly Issuer`s assets of UAH0.5m as of June 30, 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
