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12.06.2008
Credit-Rating assigns PROFIT GRUPP LLC`s bond issue uaCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaCC to registered discount bonds (series A) issued by Kiev-based PROFIT GRUPP Development Company LLC (`issuer` or `company`). The amount of the issue is UAH100m, with 8-year original maturity. The company`s principal activity is development. In the course of analysis Credit-Rating considered issuer`s financial statements for 2006-2007 as well as its other inside information.
An obligor or a debt liability with uaCC credit rating is characterised with the VERY HIGH DEFAULT POSSIBILITY.
Factors maintaining the credit rating
- The issuer operates in Kiev`s development market, where demand for real estate remains stably high.
Factors constraining the credit rating
- High specific gravity of issuer`s non-specialized assets, namely investments in securities and authorized stocks of other companies, which amount made up of 98% of overall issuer`s assets.
- Issuer`s property and funds are pledged as security for a bank loan.
- The amount of the discount bond issue of UAH100m exceeds issuer`s equity of UAH8.5m as of Dec. 31, 2007.
- Issuer`s information opacity.
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
