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08.04.2008
Credit-Rating assigns INTEGRA-HOLDING`s bond issue uaBBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB to registered housing bonds (series A-L) issued by Kiev-based INTEGRA-HOLDING LLC (`Issuer` or `company`). The amount of the issue is UAH312.8m, with 3-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a multi-storied office and residential complex with integrated parking garage located in the city of Kiev. In the course of analysis Credit-Rating considered Issuer`s financial statements for 2002-2006 and 9M2007 as well as its other inside information.
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 KDD-Group, which companies are engaged with project development, in fact there have been implemented a number of projects in 1997-2006, aimed at construction of residential, commercial and office premises of 157K sq.m. total floor area.
- The general contractor to construction of a residential complex located 2, Strutinskogo St., Kiev, which premises to redeem the bond issue is Osnova-Solsif JV, which owns production facilities empowering the construction process to be supplied on almost all stages.
Factors constraining the credit rating
- Risks imposed by redistribution of cash flows within KDD-Group neglecting Issuer`s interests, which makes the company vulnerable to risks of the entire group.
- Risks imposed by the size of projects: KDD-Group plans to construct a number of residential and commercial buildings of 2.7m sq.m. and of UAH4.5bn estimated value by the year of 2012.
- The Issuer does not have experience in redemption of housing bonds.
- The Issuer`s corporate rights, as well as a land plot of 0.30 ha (37% of the space allotted to construction) are pledged as security for a bank loan.
- 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
