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18.10.2007
Credit-Rating rates TPK STROYSERVIS at uaBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned UAH13m 3-year issue of registered housing bonds (A series) by Donetsk-based TPK STROYSERVIS LLC (`Issuer` or `company`) a long-term credit rating of uaBB- (uaBB minus). The company`s principal activity is investment and construction. Today the company constructs a 9-storied building in the city of Avdeyevka, 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 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 planned issue is to be redeemed by premises in reconstructed building in 15, Vorobyova str., Avdeyevka, Donetsk Oblast with current construction readiness of 37 per cent.
- Salyut LLC is the general constructor of the construction having experience in construction, reconstruction and completing a number of units in the city of Donetsk.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in housing bonds redemption.
- The issue size exceeds 37 per cent Issuer`s assets as of June 30, 2007.
- Issuer`s detrimental performance in 2006 and 1H2007 with the uncovered loss amounted to UAH(-)0.5m 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
