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08.10.2008
Credit-Rating downgrades Chernihiv Plant of Building Materials 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 plus) the long-term credit rating assigned to registered housing bonds (series C-E) issued by Chernihiv-based Chernihiv Plant of Building Materials LLC (`issuer` or `company`). The amount of the issue is UAH87.7m due Jan. 31, 2010. The rating outlook has been changed to stable . The company`s principal activity is production of sand-lime bricks and porous aerated concrete blocks as well as investing and construction. Today the issuer implements several residential construction projects in the city of Simferopol. To revise the rating Credit-Rating considered issuer`s financial statement for 2Q2008 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.
Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
Factors maintaining the credit rating
- The issuer has experience in redemption of housing bonds.
- The issuer has production facilities, which empowers it to partially supply its investment and construction projects.
Factors constraining the credit rating
- Delays in accomplishments of construction works at issuer`s projects.
- Postponements of reconstruction of issuer`s production facilities.
- Issuer`s insufficient information transparency and openness.
- 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
