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17.06.2008
Credit-Rating assigns Feniks SPV`s upcoming bond issue 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 registered coupon bonds (series A) to be issued by Chernivtsi-based Feniks SPV (`issuer` or `company`). The amount of the issue is UAH18m, with 4-year original maturity. The company`s principal activity is construction. Today the company constructs a residential building located in the city of Chernivtsi. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 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 issuer has experience in residential construction; in fact the company has built a residential building of 2.5K sq.m. located in the city of Chernivtsi, with construction readiness of another one being currently 95%.
Factors constraining the credit rating
- The amount of the bond issue of UAH18m exceeds issuer`s EBITDA of UAH0.9m.
- Issuer`s volatile performance indicators accompanied by absence of development strategy for the period of the issue`s maturity.
- 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
