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28.08.2008
Credit-Rating assigns Gal-Ekspresiya PE`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+ (uaB plus) to registered housing bonds (series A) to be issued by Gal-Ekspresiya PE (`issuer` or `company`). The amount of the issued is UAH44.4m, with 3-year original maturity. The company`s principal activity is investing and construction. Today the company constructs a residential complex with installed social facilities located in Lviv Oblast. 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 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 credit rating
- The issuer has experience in investing and construction, in fact the issuer as a customer and investor has built a residential building of 2.7K sq.m. located in the city of Lviv.
- The construction of a residential complex located in the borough of Zubra, Lviv Oblast (which premises to redeem the upcoming bond issue) involves Budekstra KPChF as a general contractor, which has experience of construction of 18.5K sq.m. of residential premises.
Factors constraining the credit rating
- The issuer does not have experience in redemption of housing bonds.
- The construction of the residential complex is on the initial stage.
- The amount of the upcoming bond issue of UAH44.4m exceeds the issuer`s assets of UAH8.4m and equity of UAH4.8m 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
