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26.12.2007
Credit-Rating assigns NPO Sozidatel`s upcoming bond issue uaBBB+
Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB+ (uaBBB plus) to UAH80.2m 1,5-year registered housing bonds (A-B series) to be issued by Dnepropetrovsk-based Scientific and Manufacturing Association Sozidatel CJSC (`Issuer` or `company`). The company`s primary activity is construction of industrial and residential buildings and engineering and developing. Today the company implements 5 investment and construction projects in the city of Dnepropetrovsk. 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 uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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 a leading construction company in the city of Dnepropetrovsk, which, starting from 1994, has built or reconstructed 38 residential, commercial or social buildings of overall 250K sq.m. floor area (13 buildings of 125.1K sq.m. since 2003).
- The Issuer operates production facilities and structural subdivisions, which empowers the Issuer to provide the construction process on almost all stages.
Factors constraining the credit rating
- High specific gravity of nonspecialized assets (securities) in Issuer`s asset structure, which accounted for 44 per cent as of Sep. 30, 2007.
- The planned issue size of UAH80.2m exceeds 60 per cent the Issuer`s equity of UAH49.8m as of Sep. 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 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
