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13.02.2008
Credit-Rating assigns Krymmedservice`s upcoming bond issue uaBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBB- (uaBB minus) to UAH22.2m 2-year registered housing bonds (A series) to be issued by Crimea-based Krymmedservice LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs a recreational complex located in the city of Yalta and a recreational complex located in the borough of Simeiz. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2004-2007 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. The plus (+) or minus (-) modifier denotes rating`s relative status within major categories.
Factors maintaining the credit rating
- The Issuer has experience in investment and construction projects; the company as a customer is completing the construction of a recreational complex located 9, Volodarskogo st., Yalta, which construction readiness made up 95 per cent as at 2008-beginning.
- The construction of a recreational complex located in Lugovskogo st., borough of Simeiz (which premises are to redeem the bond issue) involves Professional LLC, which is a general contractor of the project this company has built over 51K sq.m. of residential and non-residential premises.
- The real estate prices and demand have been stably growing on the southern coast of Crimea.
Factors constraining the credit rating
- The Issuer does not have experience in redemption of housing bonds.
- The construction of a recreational complex located in the borough of Simeiz is currently on the initial stage.
- The size of the bond issue of UAH22.2m exceeds significantly the Issuer`s equity of UAH0.1m as of Dec.31, 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 Communication Department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
