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16.11.2007
Credit-Rating: ALIMPEKS-MERTINGER`s upcoming bond issue assigned uaCCC+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaCCC+ (uaCCC plus) to UAH59m 2-year registered housing bonds (A series) to be issued by Kiev-based ALIMPEKS-MERTINGER LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company constructs a multistoried residential building with installed office facilities, commercial premises and underground parking in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 1H2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer has all permitting documents for construction of a residential building in 25, Oleny Teligi str., Kiev, which premises are to be delivered on the bond issue.
- The general contractor of the construction will be Stroitelnoye Upravleniye-145 LLC, which has operated in the construction market since 2001 and enjoys a significant experience in residential and non-residential construction.
- The Issuer operates in the real estate market of Kiev, where 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 bonds` redemption.
- The planned issue is to be redeemed by premises of the building, which is currently on the initial stage of construction.
- The rights for the land renting and proprietary rights for the building to be delivered are deposited under the banking loan.
- The planned issue size of UAH59m exceeds significantly Issuer`s assets of UAH0.2m as of Jul.1, 2007 with the Issuer`s equity being negative of UAH(-)84.4K.
- 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
