print
19.12.2007
Credit-Rating assigns Ukrzhylstroy Plus`s upcoming bonds uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaB+ (uaB plus) to UAH62m 2-year registered housing bonds (E-H series) to Illichevsk-based Ukrzhylstroy Plus LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company constructs a residential district in the city of Illichevsk. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2003-2006 and 9M2007 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 Issuer is engaged with construction of a residential district in Khantadze str., city of Illichevsk (8 buildings): one of these buildings is already delivered with the construction readiness of another two exceeding 40 per cent.
- The Issuer is engaged with organizing and funding of residential and commercial construction in the city of Illichevsk (Odessa Oblast) , where real estate prices and demand have been stably high.
Factors constraining the credit rating
- The Issuer does not have experience in housing bonds redemption.
- The bond issue is to be redeemed with premises in the residential buildings ##7B, 7Г, 3 and 5 situated in Khantadze str., city of Illichevsk, which construction readiness is currently on the initial stage.
- Issuer`s detrimental performance in 2003-2006 and 9M2007, with the total loss making up UAH2m as of Sep. 30, 2007.
- The face size of two bond issues, including the upcoming one (all UAH99m), exceed 11.4x the Issuer`s equity of UAH8.7m as of Sep. 30, 2007.
- Instability in legislation and tax environment affecting both the construction industry and project financing.
Information on all credit ratings assigned in accordance with the National Scale may be found in REUTERS and BLOOMBERG information systems.
For more information, please contact:
Information and analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
