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15.07.2008
Credit-Rating rates SIM-INVEST LLC at uaB
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaB to Dnepropetrovsk-based SIM-INVEST LLC (`issuer` or `company`). Credit-Rating also assigned a long-term credit rating of uaB+ (uaB plus) to company`s registered housing bonds (series A-D) for the amount of UAH190.9m, with 1 ½-year original maturity. The company`s principal activity is investing and construction. Today the company constructs Kirovskiy residential complex located in the city of Dnepropetrovsk. In the course of analysis Credit-Rating considered issuer`s financial statements for 2002-2007 and 1Q2008 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 counterparty`s credit rating:
- The borrower has necessary experience in investing and construction, specifically the issuer as a customer has built an office and trade building located 101, Kirova Av. Dnepropetrovsk, of 5K sq.m. total floor area.
- The real estate prices and demand in Dnepropetrovsk have been growing over the past few years.
Factors constraining the counterparty`s credit rating:
- Counterparty`s significant debt burden: the debts on promissory notes amounted to UAH49.3m or 95% of the liabilities as of March 31, 2008.
- Counterparty`s detrimental performance over the past few years (except for 2005) and 1Q2008, with the uncovered loss amounting to UAH0.8m 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
