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14.07.2008
Credit-Rating assigns KYIVSOTSBUD CJSC`s bond issue uaBB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBB to registered housing bonds (series A, B) to be issued by Kiev-based KYIVSOTSBUD CJSC (`issuer` or `company`). The amount of the issue is UAH79.9m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential district Berizky, located in the city of Vyshgorod, Kiev Oblast. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1Q2008 as well as its other inside information.
An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions.
Factors maintaining the credit rating
- The issuer has necessary experience in investing and construction, in fact the company as a customer has constructed 5 residential buildings with installed premises located in the city Vyshgorod and borough of Kotsyubinske in Kiev Oblast of 50 000 sq.m.
- Issuer`s lucrative performance during 2005-2007.
Factors constraining the credit rating
- The issuer does not have experience in redemption of housing bonds.
- The construction project of the 2 nd phase in Berizky district, located Sholudenka St., city of Vyshgorod, which premises to redeem the bond issue is currently on the initial stage.
- The size of the bond issue of UAH79.9m exceeds issuer`s assets of UAH22.4m and equity of UAH7.2m as of 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
