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14.11.2007
Credit-Rating: Nove Misto`s upcoming bond issue assigned uaCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaCC to UAH100m 10-year registered discount bonds (A-J series) to be issued by Kiev-based Nove Misto LLC (`Issuer` or `company`). The company`s primary activity is providing engineering services in the city of Kiev. Today the company implements investment projects in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 1Q2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCC credit rating is characterized with the VERY HIGH DEFAULT POSSIBILITY.
Factors maintaining the credit rating
- The Issuer plans to render services in the real estate market of Kiev, where prices and demand have been growing over the past few years.
Factors constraining the credit rating
- Issuer`s information intransparency and vagueness.
- The Issuer`s liabilities of UAH100m on the bond issue almost 56x exceed Issuer`s asset balance of UAH1.8m as of Mar. 31, 2007.
- Issuer`s detrimental performance during its entire period of operation with the uncovered loss accounting for UAH305.4K as of Apr.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
