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07.10.2008
Credit-Rating downgrades SK Citadel LLC`s bonds to uaCCC
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it downgraded to uaCCC from uaB- (uaB minus) the long-term credit rating assigned to registered bonds (series A-E) issued by Kiev Oblast-based Construction Company Citadel LLC (`issuer` or `company`). The amount of the issue is UAH178.9m due June 30, 2008. The company`s principal activity is investing and construction. Today the company as a customer constructs a residential complex located in the city of Boryspil, Kiev Oblast. To revise the rating Credit-Rating considered issuer`s financial statements for 4Q and full 2007 and its other inside information.
An obligor or a debt liability with uaCCC credit rating is characterized with the VERY LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. There is a default possibility.
Factors constraining the credit rating
- Issuer`s information opacity and intransparency.
- The issuer does not have experience in implementation of investing and construction projects, neither in redemption of housing bonds.
- A delay of over 1 year duration, which occurred in commissioning of a residential complex located between Dzerzhinskogo, Kosiora and Franko streets in the city of Boryspil.
- Issuer`s low performance indicators recorded in the past few years.
- 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.ua
