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17.12.2007
Credit-Rating assigns VASYLKIV ZHYLBUD`s bond issue uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaCCC to UAH48m 2-year registered housing bonds (A-O series) to be issued by Kiev Oblast-based VASYLKIV ZHYLBUD LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company as a customer constructs a residential complex with installed office and household premises in the city of Vasylkiv. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2006 and 9M2007 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.
Factors maintaining the credit rating
- The Issuer is engaged with organizing and funding the residential construction in Kiev`s suburb the city of Vasylkiv, 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 investing and construction, neither in housing bonds redemption.
- The planned issue size of UAH48m exceeds significantly the Issuer`s assets of UAH30K as of Sep. 30, 2007.
- The upcoming bond issue is to be redeemed by premises in the residential buildings in the military village #11, the city of Vasylkiv, which construction is currently on the initial stage.
- 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
