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12.10.2007
Credit-Rating rates upcoming issue by Investment and Construction Company Stolytsya at uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH100m 10-year issue of registered discount bonds (A-J series) by Kiev-based Investment and Construction Company Stolytsya (`Issuer` or `company`) a long-term credit rating of uaCCC . The company`s primary activity renders services in architecture, construction engineering, research in natural and technical sciences and realtoring. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 1Q2007 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 renders realtor services in the city of Kiev, which is the leader in both construction rates and real estate prices.
- Issuer`s lucrative performance in 2006 and 1Q2007 with the undistributed profit amounted to UAH8.9m as of July 1, 2007.
Factors constraining the credit rating
- Issuer`s information intransparency.
- The Issuer`s liabilities on the planned issue of UAH100m are commensurate to Issuer`s asset balance of UAH102.2m and almost 16x exceed Issuer`s equity of UAH6.3m as of April 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
