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23.11.2007
Credit-Rating: Runa`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 to UAH24.1m 1-year issue of registered housing bonds (B-D series) issued by Crimea-based Runa LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company as a customer and investor constructs a 12-storied elite-class Admiralteyskiy residential complex with installed facilities in the city of Yalta. 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 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.
Factors maintaining the credit rating
- The bond issue is to be redeemed by premises in the residential complex based 8Б, Rudanskogo str, city of Yalta with the current construction readiness of a. 70 per cent and of UAH35.5m invested as of Oct. 15, 2007.
- The Issuer is engaged with organizing and financing of construction in the city of Yalta, 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 bonds redemption.
- The issue size of UAH24.1m exceeds 2x the Issuer`s equity as of Jun. 30, 2007, which is comprised of participants` securities by 82 per cent.
- Issuer`s detrimental performance in 2003-2006 and 1H2007 with the uncovered loss amounting to UAH0.8m 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
