print
29.02.2008
Credit-Rating assigns Bytradiotekhnika`s upcoming bond issue uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaB to UAH37.7m 1 ½-year registered housing bonds (A-D series) to be issued by Sevastopol-based Bytradiotekhnika OJSC (`Issuer` or `company`). The company`s principal activity is lease of own real estate, reparation of home appliances, retail and construction. Today the company constructs 2 residential buildings both located in the city of Sevastopol. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2007 as well as other inside information furnished by the company.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely susceptible to adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- High stage of construction of residential buildings located 19, Repina st., city of Sevastopol, which will redeem the upcoming bond issue, in fact as of Feb. 1, 2008 the project has been invested UAH9.4m or 25 percent of the project estimated value.
- The real estate prices and demand have been constantly growing in the city of Sevastopol.
Factors constraining the credit rating
- The Issuer does not have experience in investment and construction projects, neither in bonds redemption.
- The issue size of UAH37.7m exceeds Issuer`s assets of UAH24.4m and equity of UAH24.4m 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
