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22.11.2007
Credit-Rating: Systemabud`s bond issue rated uaB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaB- (uaB minus) to UAH77.7m 2-year registered housing bonds (A-C series) issued by Kiev Oblast-based Systemabud LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company as a customer implements a project on construction of the 1st stage of the residential complex with installed premises and a parking based in the city of Boryspil. 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 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 bond issue is to be redeemed by premises in the first stage of the residential complex based 14, Dzerzhiskyi str., city of Boryspil which has been invested as at October-beginning UAH5m or 5.7 per cent of the overall size of investments.
- The Issuer is engaged with organizing and financing the residential construction in the city of Boryspil, where real estate prices and demand have been growing in line with those in Kiev.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds` redemption.
- The issue size of UAH77.7m exceeds almost 10x Issuer`s assets of UAH7.8m as of Jun.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 National Scale may be found in REUTERS, BLOOMBERG and FTN MONITOR information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
