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23.01.2008
Credit-Rating assigns Trustbud`s upcoming bond issue uaCCC+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaCCC+ (uaCCC plus) to UAH111.6m 3-year registered housing bonds (A-Y1 series) to be issued by Kiev-based Trustbud LLC(`Issuer` or `company`). The company`s primary activity is investing and construction. Today the company as constructor and investor builds a residential building in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2006 and 9M2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer has all permitting documents for construction of a residential multistoried building situated in Dneprovskyi District of Kiev (crossing of Yuriya Shumskogo and Bereznyakovskaya streets), which premises shall redeem the bond issue.
- The Epos Holding has experience in construction: it has delivered 6 buildings of 141.2K sq.m. over 2000-2006. This holding incorporates Kyivbud-Epos LLC, which is a general contractor of the project.
- The Issuer is engaged with organizing and financing of residential construction in the city of Kiev, where real estate prices and demand have been growing over the past few years.
Factors constraining the credit rating
- The Issuer does not have experience in investing and construction projects, neither in housing bonds redemptions.
- The construction of the building, which premises to redeem the upcoming bond issue, is currently on the initial stage.
- The size of the bond issue of UAH111.6m exceeds significantly Issuer`s asset balance of UAH3.2m as of Sep. 30, 2007, accompanied by its negative equity of UAH(-)12.6K.
- 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 Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
