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26.08.2008
Credit-Rating assigns Intertekhnika LLC`s upcoming 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) to be issued by Kiev-based Intertekhnika LLC (`issuer` or `company`). The amount of the issue is to be UAH42.1m with 2-year original maturity. The company`s principal activity is investing and construction. Today the company as a customer constructs a trade-entertainment and residential complex located in the city of Kiev. In the course of analysis Credit-Rating considered issuer`s financial statements for 2004-2007 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 construction of the trade-entertainment and residential complex located 3, Sribnokilska Str., Kiev, which premises to redeem the bond issue is currently on the stage of completion.
- The project involves HC Kyivmiskbud JSC, which is the project`s investor and general contractor having significant experience in the industry and being the leading construction company in Kiev.
Factors constraining the credit rating
- The issuer does not have experience in investment and construction, neither in redemption of housing bonds.
- Issuer`s negative equity of UAH(9.8)m 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
