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24.11.2008
Credit-Rating assigns Construction Ltd LLC`s upcoming bond issue uaB+
Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned a long-term credit rating of uaB+ (uaB plus) to registered housing bonds (series L-N) to be issued by Mykolayiv-based Construction Ltd LLC (`issuer` or `company`). The amount of the issue is to be UAH79.8m due Jul. 31, 2011. The company`s principal activity is investing and construction. Today the company constructs the 2nd phase of Admiral residential complex located in the city of Mykolayiv. In the course of analysis Credit-Rating considered issuer`s financial statements for 2003-2007 and 9M2008 and its other inside information.
An obligor or a debt liability with uaB credit rating is characterized with the LOW creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is extremely 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 has experience in investing and construction, in fact, the issuer as a customer commissioned 1st phase of Admiral residential complex of 20K sq.m. total floor area, located 31-б, Admiralska Str., Mykolayiv.
- The amount of funds invested in construction of the 2nd phase of Admiral residential complex, which premises to redeem the bond issue is UAH14.1m or 17.5% of the project`s estimated value as of Oct. 27, 2008.
Factors constraining the credit rating
- The amount of the upcoming bond issue of UAH79.8m exceeds issuer`s assets of UAH29.4m and equity of UAH0.1m as of Sep. 30, 2008.
- Issuer`s limited access to fund raising under negative trends in Ukraine`s real estate sector.
- 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.ua
