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14.02.2008
Credit-Rating assigns Alyans-Zhylstroy`s upcoming bond issue uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today assigned a long-term credit rating of uaBBB to UAH21.8m 2-year registered housing bonds (B series) to be issued by Odessa-based Alyans-Zhylstroy LLC (`Issuer` or `company`). The company`s principal activity is investing and construction. Today the company constructs 7 residential buildings located in the city of Odessa. 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 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.
Factors maintaining the credit rating
- The Issuer is incorporated with Alyans Corporation, which is one of the leading players in Odessa`s construction and real estate sector.
- The Issuer has experience in investment and construction as an investor and general contractor being incorporated with Alyans Corp., in fact the Issuer delivered a residential building situated in microdistrict III-4-1, 17B, Kotovskogo of 11.2K sq.m. floor space. Other 2 residential buildings of 11.8K sq.m. are currently on the finalizing stage of construction, and other 2 residential buildings are currently being constructed by the Issuer.
- The Issuer`s equity of UAH51.2m as of Sep. 30, 2007 exceeds more than 2x the size of the bond issue of UAH21.8m
Factors constraining the credit rating
- The Issuer does not have experience in bonds redemption.
- The Issuer is vulnerable to risks of Alyans Corp., including to those regarding the redistribution of the cash flow within the group neglecting Issuer`s interests.
- 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
