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26.09.2008
Credit-Rating assigns Arkada-Fund LLC`s 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 closed issue of registered coupon bonds (series P) by Kiev-based Mortgage Company Arkada-Fund LLC (`issuer` or `company`). The amount of the issue is UAH100m due on Dec. 23, 2010. The bonds were outstanding at the moment the rating was assigned. 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 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
- In case of need the issuer may raise funds from Arkada JSCB (rated uaA) in exchange for purchased loans, which is promoted by issuer`s close operating relations and participants relations with this bank.
Factors constraining the credit rating
- Issuer`s extreme dependency upon Arkada JSCB and low diversification of investments (the securities and mortgage loans are granted mainly to economic entities), which may significantly limit cash inflows, which are necessary for repayment of liabilities.
- The decrease in specific gravity of mortgage loans granted to individuals in the structure of the principal asset (below 30%), which may significantly limit stability of cash inflows.
- Low issuer`s performance indicators and operating loss in 2Q2008.
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
