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09.01.2008
Credit-Rating assigns TIARA’s bond issues uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB to registered housing bonds (B and C series) issued by Boryspil-based TIARA LLC (Issuer or company). The issue size is UAH26m and UAH21m respectively to series mentioned, having 3-year original maturity. The company's primary activity is investing and construction. Today the company as a customer constructs 5 residential buildings in the city of Boryspil and 1 residential building in the city of Pereyaslav-Khmelnitskyi. 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 uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating:
- The Issuer has experience in residential construction; in fact the company has delivered 4 residential buildings of 16.3K sq.m. with another 2 buildings being currently delivered;
- The Issuer is engaged with residential construction in Kievs satellite-town Boryspil, where demand for residential and non-residential premises grows in line with that in Kiev.
Factors constraining the credit rating:
- The Issuer does not have experience in housing bonds redemption;
- The bonds of B series are to be redeemed by premises in the residential building situated 71b, Golovatogo str., Boryspil; the bonds of C series are to be redeemed by premises in the building situated 6, Kirova str, Pereyaslav-Khmelnitskyi, with the construction of both being currently on the initial stage;
- The face value of 2 bond issues of UAH47m exceeds significantly the Issuers equity of UAH0.4m 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 Rating 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
