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07.11.2007
Credit-Rating: Sentyabr`s upcoming bond issue assigned uaB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaB- (uaB minus) to UAH30.6m 3 ½-year registered housing bonds (A series) to be issued by Kharkiv-based Sentyabr PV (`Issuer` or `company`). The Issuer`s primary activity is investing and constructing. Today the company constructs a residential building with installed social and office facilities and a shopping centre with parking all situated in the city of Kharkiv. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 9M2007 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 the building situated in Sevchenka str., the city of Kharkiv, which was invested a.6 per cent or UAH5.8m of the project estimated value.
- The Issuer is engaged with residential construction in the city of Kharkiv, 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 investment and construction projects, neither in housing bonds` redemption.
- The planned issue size of UAH30.6m exceeds 30 per cent the Issuer`s assets of UAH23.6m as of Sep. 30, 2007.
- Issuer`s negative equity of UAH(-)2.2m as of Sep. 30, 2007 entailed by its detrimental performance recorded in 2006 and 9M2007.
- 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
