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15.01.2008
Credit-Rating assigns LIKO-HOLDING`s 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 UAH547.4m 3-year registered housing bonds (T-AC series) issued by Kiev-based LIKO-HOLDING LLC (`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company constructs two residential buildings with underground parking garages and other public service facilities in the city of Kiev. 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 has already experienced construction financing via bond issuances (as of Oct. 1, 2007 the A-E series bonds redeemed 103,774 sq.m. in LIKO-GRAD complex, with F-I and K series bonds to redeem 45K sq.m. of residential and non-residential premises built.
- The Issuer has at its disposal production facilities and structural subdivisions, which allows the Issuer to supply the construction process on almost all stages.
Factors constraining the credit rating
- The issue size of UAH547.4m exceeds significantly Issuer`s equity of UAH1.5m as of Oct. 1, 2007.
- Issuer`s detrimental performance entailed by redistribution of funds within the holding, in fact the net loss made up UAH372.8K in 2006 with this figure for 9M2007 being UAH2,778.8K.
- 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
