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28.11.2007
Credit-Rating assigns Vivat-Tur`s upcoming bonds uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaB to UAH 49m 1 1/2-year registered housing bonds (A-C series) to be issued by Donetsk-based Vivat-Tur LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company as a customer and investor constructs a 16-storied residential building with a shopping centre, underground parking and guest parking in the city of Donetsk. 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 planned bond issue is to be redeemed by premises in the residential building situated in the city of Donetsk with construction readiness of a. 50 per cent as of Oct. 4, 2007 with UAH18.9m invested.
- The Issuer is engaged with organizing and financing the construction activities in the city of Donetsk, 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 housing bonds redemption.
- The planned issue size of UAH49m exceeds 3.8x Issuer`s assets of UAH12.8m as of Jun. 30, 2007.
- Issuer`s negative equity of UAH192.1K as of Jun.30, 2007 entailed by Issuer`s detrimental performance (the uncovered loss amounted to UAH292.1K).
- 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
