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10.09.2008
Credit-Rating assigns Trest Kyivmiskbud-1 CJSC`s upcoming bond issue uaA-
Credit-Rating, a nationally recognized credit rating agency in Ukraine, has today announced that it assigned a long-term credit rating of uaA- (uaA minus) to registered housing bonds (series A, B) to be issued by Kiev-based Kyivmiskbud-1 CJSC (`issuer` or `company`). The amount of the issue is to be UAH59.1m, with 2-year original maturity. The company`s principal activity is investing and construction. Today the company implements 9 construction projects located in the city of Kiev, Kiev Oblast, cities of Sudak and Cherkassy. In the course of analysis Credit-Rating considered issuer`s financial statements for 2005-2007 and 1H2008 as well as its other inside information.
An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is 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 is a principal construction company within Stolytsya Corporation, which participants are vertically integrated and render a full range of construction and funding services (Stolytsya Corp. is one of three biggest construction companies in Kiev by both revenues and homes delivered).
- Issuer`s net sales and net profit have been growing over 2006-2007, with the sales profitability being always above 14 per cent.
- Issuer`s low debt burden: the ratio of its net debt (as of June 30, 2008) to the EBITDA (recorded in the financial year ended June 30, 2008) is 0.09.
- The company`s management enjoys significant experience in construction industry and in the Corporation.
Factors constraining the credit rating
- The proprietary rights for the apartments in the residential buildings ##50/1 and 50/3 located in Gagarina Str., #41/1 in Mytnutsya-2 in Cherkassy, which to redeem the upcoming bond issue, are pledged as security for a loan.
- 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 analytic department
Sergey Rozumyak +38 044 490 25 50
SRozumyak@credit-rating.com.ua
