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08.07.2008
Credit-Rating assigns AT Realti LLC`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 housing bonds (series A, B) to be issued by Dnepropetrovsk-based AT Realti LLC (`issuer` or `company`). The amount of the issue is UAH30.2m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential building located in the borough of Livadiya, Yalta. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1Q2008 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 all permissions for construction of a residential building located 44A, Baturina St., borough of Livadiya, Yalta, which premises to redeem the bond issue.
- The real estate prices and demand have been growing over the past few years in Crimea, and, in particular, in Great Yalta.
Factors constraining the credit rating
- The issuer does not have experience in investment and construction, neither in redemption of housing bonds.
- The upcoming bond issue is to be redeemed by premises in a multi-storied residential building, which is currently on the initial stage of construction.
- The size of the upcoming bond issue of UAH30.2m exceeds 2x the amount of issuer`s assets of UAH13.9m and equity of UAH13.2m as at March 31, 2008.
- 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
