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27.03.2008
Credit-Rating assigns Construction-Industrial Alliance’s upcoming bonds uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaCCC to UAH500m 5-year registered discount bonds (series A-C) to be issued by Kiev-based Construction-Industrial Alliance LLC (`Issuer` or ;`company`). The company`s principal activity is construction of recreational and sanitary non-residential buildings and facilities. Today the company as a customer and investor reconstructs a cinema theatre with a recreational and sanitary facility located in the borough of Gurzuf (Autonomous Republic of Crimea). In the course of analysis Credit-Rating considered Issuer`s financial statements for 2005-2006 as well as its other inside information.
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.
Factors maintaining the credit rating
- The real estate prices and demand have been constantly growing over the past few years in Crimea.
Factors constraining the credit rating
- The issue size of UAH500m exceeds Issuer`s assets of UAH5.8m and equity of UAH4.8m as of Dec. 31, 2007.
- The Issuer has not been involved in active operations, with its net sales remaining under UAH15K in 2005-2007.
- 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
