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16.05.2008
Credit-Rating assigns Taia LLC`s 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- (uaB minus) to registered housing bonds (series A) issued by Kharkiv-based Taia LLC (`issuer` or `company`). The amount of the issue is UAH34.4m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential building with installed office premises located in the city of Kharkiv. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 as well as its other inside information.
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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).
Factors maintaining the credit rating
- The construction of the residential building located 101, Klochkovskoy St. Kharkiv, which premises to redeem the bond issue has been invested 25% of the project`s estimated cost as of Mar. 14, 2008.
- The issuer operates in the real estate market of Kharkiv, where demand has been growing over the past few years.
Factors constraining the credit rating
- The issuer did not conduct any financial and economic activities in 2003-2007.
- The issue size of UAH34.4m is in excess of issuer`s equity of UAH8m 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
