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12.10.2007
Credit-Rating assigns MASTER FINANS at uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned Dnepropetrovsk-based MASTER FINANS LLC (`Issuer` or `company`) a long-term credit rating of uaB . The company`s principal activity is establishing Funds for Real Estate Operations for financing the construction of Zapadnaya Stena residential complex (1st stage in the 1st phase) situated in the city of Dnepropetrovsk and of Pioner residential complex with social facilities based in the city of Mariupol, Donetsk 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 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 cooperates with more than 10 Dnepropetrovsk-based companies which are amalgamated under MASTER brand and are engaged mainly in trade and investments. The companies participated in construction of residential buildings of 33K+ sq.m. total floor area in Dnepropetrovsk and of trade centres of 27K+ sq.m. in 8 oblast centres, as well as of hotels.
- The Issuer constructs residential and non-residential buildings in the cities of Mariupol, Donetsk Oblast and Dnepropetrovsk, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- Issuer`s information intransparency.
- The Issuer`s activities in cooperation with MASTER trade mark companies impose risks of redistribution of companies` funds neglecting Issuer`s interests.
- 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
