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21.07.2008
Credit-Rating assigns Agrofirma Troyanda OJSC`s upcoming bond issue 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 registered housing bonds (E-H series) to be issued by Kiev-based Agrofirma Troyanda OJSC (`issuer` or `company`). The amount of the issue is to be UAH127.1m due Dec. 1, 2009. The company`s principal activity is investing and construction. Today the company implements a project aimed at construction of a residential complex with social facilities and a parking and at improvement of natural monument Kristerovaya Gorka located in the city of Kiev. 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 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.
Factors maintaining the credit rating
- The planned bond issue is to be redeemed with premises in Kristerovaya Gorka residential complex, situated 45, Vishgorodska st., Kiev, with the 1st stage of construction invested UAH131.8m or 6.7% of the overall value of all stages as of Jul. 25. 2008.
- K.A.N. Development holding, which incorporates the project`s general contractor, has necessary experience in construction activities.
Factors constraining the credit rating
- The issuer does not have experience in implementation of investment and construction projects, neither in redemption of housing bonds.
- The rights for tenancy of a land plot located 45 Vyshgorodska St., Kiev and the building under construction are pledged as security for a banking loan.
- Risks imposed by size of the project: the total floor area of the complex, which is to be constructed in 12 stages, is 451.2K sq.m.
- Issuer`s detrimental performance over 2004-2007 and 1Q2008, with the company`s uncovered loss amounting to UAH6.1m 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
