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23.09.2008
Credit-Rating assigns BDSK Merkuriy LLC`s upcoming bond issue uaBBB-
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaBBB- to registered housing bonds (series E-T) to be issued by Kiev Oblast-based BDSK Merkuriy LLC (`issuer` or `company`). The amount of the issue is to be UAH115m, due on May 31, 2014. The company`s principal activity is investing and construction. Today the company implements an investment and construction project in the city of Brovary. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 1H2008 as well as its other inside information.
An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by 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 construction of residential buildings: starting from 2003 the company as a customer, investor and general contractor has commissioned 12 residential buildings of 70K sq.m. total floor area.
- The issuer has repaid before due the bonds of series E.
- The issuer has production facilities and structural subdivisions, which empowers it to supply the construction process on almost all stages.
Factors constraining the credit rating
- Delays in commissioning of already built residential houses, which premises are to be delivered to its owners, and to redeem the initial bond issue.
- 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
