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15.11.2007
Credit-Rating: Artem`s bond issue assigned uaA
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaA to UAH124.6m 3-year registered housing bonds (A-C series) issued by Kiev Oblast-based Investment and Construction Company Artem CJSC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company constructs an office building of a financial institution in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The Issuer is incorporated with the group of companies associated with Artem State Joint-Stock Holding Company, which is a strategic company for the national economy.
- The bond issue is underwritten by AURA CJSC (owned by Artem SJSHC), which net sales in 2006 exceed 2.6x the issue size; the Issuer`s equity makes up UAH56.6m as of Jun.30, 2007, with the undistributed profit amounting to UAH2.3m.
- The Issuer is engaged with constructing of office building in the centre of the city of Kiev, where demand for real estate remains stably high.
- Issuer`s transparency and information openness.
Factors constraining the credit rating
- The Issuer does not have experience in construction of commercial real estate, neither in bonds` redemption.
- 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
