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26.10.2007
Credit-Rating rates Krymska Yuridychna Grupa`s upcoming issue at uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned upcoming UAH87m 2-year issue of registered housing bonds (A-Ш series) by Crimea-based Krymska Yuridychna Grupa LLC (`Issuer` or `company`) a long-term credit rating of uaB+ (uaB plus). The company`s primary activity is renting of owned property, construction financing and organizing, and providing consulting services. Today the company constructs a residential complex and a hotel complex in the city of Alushta. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 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. 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 Breeze residential complex in the city of Alushta with 10 per cent construction readiness and which is invested UAH27m as at Oct. 1, 2007. The Issuer also constructs a hotel complex with 85 per cent construction readiness as at Oct. 1, 2007.
- The Issuer is engaged with organizing and financing the construction activities in the city of Alushta, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in bond redemption.
- The issue size of UAH87m exceeds significantly Issuer`s equity of UAH43.2K 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
