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21.01.2008
Credit-Rating assigns Kyivmiskbud-1 CJSC uaA+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaA+ (uaA plus) to Kiev-based Kyivmiskbud-1 CJSC (`Issuer` or `company`). Credit-Rating has also assigned a long-term rating of uaA+ (uaA plus) to company`s UAH51.8m 5-year issue of registered housing bonds (A, B series). The company`s primary activity is investing and construction. Today the company implements 12 construction projects situated mostly 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 uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is 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 a principal construction company within Stolytsya Corporation, which participants are vertically integrated and render a full range of construction and funding services (Stolytsya Corp. is one of three biggest construction companies in Kiev by both revenues and homes delivered).
- Issuer`s net sales and net profit have been growing over 2004-2006 and 9M2007 with the sales profitability being always above 20 per cent.
- The Issuer`s undistributed profit of UAH72.8m as of Sep. 30, 2007 exceeds 42.5 per cent the issue size of UAH51.8m
- The company`s management enjoys significant experience in construction industry and in the Corporation.
Factors constraining the credit rating
- Risks imposed by the size of projects: in the upcoming 7 years Stolytsya Corp. plans to implement over 15 investment and construction projects aimed at building of 1.5m sq.m. of premises, which almost 3x exceeds the size of the previously delivered buildings.
- 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
